D & W INDUSTRIESERVICE: Creditors Must File Claims by September 28GRADWOHL & BONSTINGL: Creditors Must File Claims by September 28LPL PERSONALLEASING: Creditors Must File Claims by September 22MUS-TI BAU: Claims Filing Deadline is September 29ORIESCHNIG GMBH: Creditors Must File Claims by September 21

ARU LLP: Creditors Must File Claims by September 24ATAN AKTOBE: Creditors Must File Claims by September 24KAPCHAGAI OIL: Creditors Must File Claims by September 24R MEDIA: Creditors Must File Claims by September 24SK AVIA: Creditors Must File Claims by September 24

BASIS LLC: Creditors Must File Claims by September 20CHERNOVTSY SUGAR: Creditors Must File Claims by September 20DELOVOY SOYUZ: Creditors Must File Claims by September 20GILEYA LLC: Creditors Must File Claims by September 20INTERTECHBUD LLC: Creditors Must File Claims by September 20

GRADWOHL & BONSTINGL: Creditors Must File Claims by September 28----------------------------------------------------------------Gradwohl & Bonstingl OEG will convene a meeting of its creditorsfor September 28, 2009, at 9:00 a.m. at:

Civil Court of Graz Room 205 Second Floor Graz Austria

A court hearing for examination of the claims has been scheduledfor October 13, 2009 at 9:00 a.m. at:

LPL PERSONALLEASING: Creditors Must File Claims by September 22---------------------------------------------------------------LPL Personalleasing GmbH will convene a meeting of its creditorsfor September 29, 2009, at 9:30 a.m. at:

ORIESCHNIG GMBH: Creditors Must File Claims by September 21-----------------------------------------------------------Orieschnig GmbH will convene a meeting of its creditors forSeptember 29, 2009 at 9:00 a.m. at:

According to CTK, Mr. Cerevka's request will be decided on by aregional court in Bratislava. Mr. Cerevka, as cited by CTK, saidbankruptcy proceedings at SkyEurope continue despite his announceddeparture.

As reported in the Troubled Company Reporter-Europe on Sept. 10,2009, the district court of Bratislava opened bankruptcyproceedings against SkyEurope.

As reported in The Troubled Company Reporter-Europe, on Aug. 31the airline filed for bankruptcy protection due to the lack ofsufficient interim funding to finance ongoing operations.

* FINLAND: Commission Approves Capital Injection Scheme-------------------------------------------------------The European Commission has approved under EC Treaty state aidrules a Finnish support scheme to stabilize financial markets byproviding capital injections to eligible financial institutions.The Commission found the measure to be in line with its GuidanceCommunications on state aid to overcome the financial crisis. Inparticular, the Commission considers that the measure constitutesan adequate means to remedy a serious disturbance of the Finnisheconomy and is as such in line with Article 87.3.b of the ECTreaty. In particular, the scheme is non-discriminatory, limitedin time and scope and provides safeguards to minimize distortionsof competition.

Competition Commissioner Neelie Kroes said: "The Finnishrecapitalisation scheme is an effective means to secure banks'capital base and to finance the real economy, while at the sametime limiting distortions of competition".

On May 29, 2009, Finland notified the draft measure, which isaimed at strengthening the solvency of deposit banks in Finland toallow them to ensure proper financing of the economy and to bettercope with expected financial difficulties.

Under the scheme the Finnish State would subscribe non-cumulativeand unsecured subordinated loan instruments issued by eligiblebanks up to 1/4 of the required amount of their own funds. Thesubordinated loans would be reimbursed after three years and uponthe approval of the Financial Supervisory Authority.

The scheme's overall budget is capped at EUR4 billion. Onlysolvent banks would be allowed to enter it.

The scheme contains elements of state aid but foresees varioussafeguards aimed at ensuring that the state intervention isproportionate, limited to what is necessary to stimulate interbanklending and adequate to reach this goal, in accordance with the EUstate aid rules, as laid down in the Commission's guidancedocuments.

In particular, the scheme provides for non-discriminatory accessas it will be open to all solvent Finnish deposit banks, includingFinnish subsidiaries of foreign banks. It is limited in time andscope, as both its global budget and amount per institution arecapped. To benefit from the recapitalisation participating banksare required to pay a market-oriented fee, in line withrecommendations from the European Central Bank.

In light of these commitments and conditions, the Commissionconcluded that the scheme would be an adequate means to restoreconfidence on Finnish financial markets. The strict safeguardswill ensure that the state support is limited to what is necessaryto stabilize the Finnish financial sector and that negative spill-over effects are minimized.

===========F R A N C E===========

FCC PROUDREED: Fitch Cuts Rating on Classe E Notes to 'BB'----------------------------------------------------------Fitch Ratings has downgraded FCC Proudreed Properties 2005's classC to E notes as detailed below. The Class A and B notes have beenaffirmed. The Outlook on Class B notes has been revised toNegative from Stable.

Fitch considers the two loans, the Paris Properties loan (72.4% ofthe portfolio) and the Proudreed France loan (27.6%) to be ofcomparable quality and to have been similarly affected bydeteriorating market conditions. Compared to the most recentvaluation in December 2008, Fitch estimates that the portfolio islikely to have suffered a weighted-average market value decline(MVD) of 23%, resulting in a WA Fitch loan-to-value ratio of 73%.This compares to the WA reported LTV of 56.3%, as of the Augustinterest payment date.

Both the Paris Properties loan (82 properties) and the Proudreedloan (34 properties) are secured by a majority of industrialassets of a reasonable quality and have strong historical interestcoverage ratios (5.04x and 2.49x respectively). Although there isdiversity of tenants, the lease income profile of the twoportfolios is rather more concentrated, with the largest tenant inboth portfolios, ND Logistics, a non-rated tenant, accounting for14% and 17% of in place rent in the two loans, respectively. Inaddition to this, the WA term to lease break for the two loans is2.3 years and 2.4 years respectively, which could place a strainon collateral income and, consequently, complicate a potentialrefinancing at loan maturity if significant leases are notrenewed. The loans do not benefit from any scheduled amortizationand are scheduled to mature in August 2014. The final legalmaturity is in August 2017.

Bloomberg relates Thomas Gruber, a spokesman for the Bavariangovernment, said in a telephone interview yesterday a quarter ofQuelle's staff in Bavaria will transfer to the new body as ofOctober 1. According to Bloomberg, the workers will be entitledto full pay while they seek another job.

Sale

Bloomberg discloses Arcandor's insolvency administrator KlausHubert Goerg said he asked Bankhaus Metzler to seek buyers forQuelle. Mr. Goerg, as cited by Bloomberg, said he will reduceQuelle's mail-order chain to 1,000 stores from 1,450 and close all109 Quelle electronics centers, cutting 3,700 jobs -- about athird of the total workforce.

Factoring

On Sept. 15, 2009, the Troubled Company Reporter-Europe, citingReuters, reported that Quelle has secured financing until the endof the year. Reuters disclosed Arcandor's insolvencyadministrator and creditor banks came to an agreement for Quelle'sfactoring, in which banks pay the company upfront for accountsreceivable from customers.

Insolvency Proceedings

On Sept. 2, 2009, the Troubled Company Reporter-Europe, CitingBloomberg News, reported that a local court in Essen formallyopened insolvency proceedings for the Arcandor on Sept. 1.Bloomberg disclosed the proceedings started for the Arcandorholding company and for 14 units, including the Karstadtdepartment-store chain and Primondo mail-order division.

As reported in the Troubled Company Reporter-Europe, on June 9,2009, Arcandor filed for bankruptcy protection after the Germangovernment turned down its request for loan guarantees. On June8, 2009, the government rejected two applications for help by thecompany, which employs 43,000 people. The retailer sought loanguarantees of EUR650 million (US$904 million) from Germany'sEconomy Fund program. It also sought a further EUR437 millionfrom a state-owned bank.

About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Itsthree core business areas are tourism, mail order services anddepartment store retail. The Company's business areas are coveredby its three operating segments: Thomas Cook, Primondo andKarstadt. Thomas Cook Group plc is a tour operator withoperations in Europe and North America, set up as a result of amerger between MyTravel and Thomas Cook AG. It also operates thee-commerce platform, Thomas Cook, supporting travel services.Primondo has a portfolio of European universal and specialty mailorder companies, including the core brand Quelle. Karstadtoperates a range of department stores, such as cosmopolitanstores, including KaDeWe (Kaufhaus des Westens), KarstadtOberpollinger and Alsterhaus; Karstadt brand department stores;Karstadt sports department stores, offering sports goods in avariety of retail outlets, and a portal, karstadt.de that offersonline shopping, among others.

BAYERISCHE LANDESBANK: Fitch Affirms 'D/E' Individual Rating----------------------------------------------------------Fitch Ratings placed the Long-term Issuer Default Ratings ofBayerische Landesbank, HSH Nordbank, Landesbank Baden-Wuerttemberg, Landesbank Saar and WestLB AG on Rating WatchNegative. In addition, the Short-term IDRs of BayernLB, WestLB,LBBW and SaarLB were placed on RWN as well as the Support RatingFloors of all five banks.

The five banks' IDRs remain at their Support Rating Floors and arebased on Fitch's view of the extent to which the respective Germanregional governments would provide support in case of need. Anyownership change could reduce the likelihood of state support forthe banks, compounding the effects of the gradual expiration ofthe vast majority of grandfathered guaranteed debt up until 2015.However, Fitch anticipates that state support will still remainstrong enough for all of the Landesbanks, with the possibleexception of WestLB, to remain within the single 'A' range ('A-','A' or 'A+') in the foreseeable future.

The RWN reflect the possibility of ownership change and a relateddiminution in the importance of these banks to their regionalstate owners. BayernLB, HSH, LBBW and WestLB have receivedsubstantial support from their owners in the form of capitalinjections and guarantees after they suffered a material impactfrom the financial crisis. For the first three banks, thesesupport measures are currently subject to a review and approvalprocess by the European Commission (EC), which is expected tocommunicate its decision in the coming months. A downgrade ofthese banks' IDRs is likely if the EC's conditions include achange in ownership. WestLB's state aid has already been approvedby the EC with conditions imposed, specifically the change ofownership until the end of 2011. While the RWN on BayernLB, HSH,LBBW and SaarLB will be reviewed by Fitch, as the EC's decisionson each of HSH, BayernLB and LBBW are announced, WestLB's RWN willremain pending until details of its future ownership structurebecome clear -- in 2011 at the latest. The RWN on SaarLB's IDRsreflects the pressures on its 75.1% parent BayernLB torestructure.

Fitch believes that the sustainability of all Landesbanken'sbusiness models will continue to rely on direct or indirect stateownership and/or institutional support from the savings banks inthe medium term, as the agency will outline in an upcoming report.

Even in a stabilised economic environment, the combination of theLandesbanken's weak stand-alone quality and reliance on wholesalefunding sources will likely prevent them from funding their (evenreduced) balance sheets on competitive terms on their own merits,depending on their various sources of funding. Therefore,developments in the restructuring processes of BayernLB, HSH andLBBW may result in negative rating actions for each bank over alonger period of time after the EC's decisions on the respectivebanks. However, Fitch notes that the pressure on theseLandesbanken's IDRs could ease if there are clear signs that achange of ownership structure is neither given as a condition ofapproving state aid by the EC nor likely to arise willingly by theowners. More certainty in this respect is unlikely before thereare more tangible signs that the economic crisis, and accompanyingdeterioration of asset quality, is nearing its end.

HSH has suffered most from the global financial and economiccrisis. It has received comprehensive support measures from itsstate owners and has initiated an ambitious restructuring process.This increases the uncertainty about the bank's ability to managethe restoration of a viable business model post-restructuring.HSH's majority owners, the relatively small regional states ofHamburg (HH) and Schleswig-Holstein (SH), went to great lengths torescue their Landesbank, constraining their own financialflexibility as a result. The local savings banks, HSH's minorityowners, largely disengaged themselves by not participating in thelatest capital increase. Fitch remains confident of the abilityof both states to provide support if needed, as underlined bytheir 'AAA' ratings. However, if the EC were to order the sale ofHSH, the regional public sector may not insist on retaining asubstantial stake in HSH.

WestLB had required state support even prior to the currentcrisis. As such its restructuring process is ahead of its peers.It was the first to ring-fence a considerable volume of troubledand non-core assets into a segregated run-off portfolio. It isalso the only Landesbank that has announced its intention to usethe bad bank scheme recently adopted by the federal parliament.The EC has completed its review of the state aid received andimposed an ownership change by end-2011. Fitch believes that, inview of the enduring recessionary environment and protracted saleendeavours, uncertainty will continue, potentially furtherunsettling potential clients and long-term debt investors. Thismay reduce the bank's chances of emerging as a strong goingconcern, making it unlikely that WestLB's owners will manage toattract interest from a majority private investor.

BayernLB and, to a lesser extent, LBBW, might also face stringentrestructuring requirements and ownership changes. Even ifpressure for these does not come from the EC this time around, arenewed need for capital injections, although currently notexpected, from the owner states cannot be fully excluded, due tothe two banks' considerable loan portfolios and potential formounting credit losses. This, or the potential implementation ofa bad bank model, would in turn trigger a new review by the EC,increasing the risk of ownership change. However, the strongerfranchises held by the two south German banks may enable them toachieve faster recoveries, reducing the probability that theywould need renewed support. Fitch also expects BayernLB's andLBBW's core franchises to remain important to their respectiveregional governments even after any potential sale or merger (fullor partial) with another Landesbank. Bayern LB and LBBW's IDRsare unlikely to fall below 'A-' in the foreseeable future, due tothe superior financial flexibility of their regional governments,Bavaria and Baden-Wuerttemberg, as well as the strategic relevanceof these banks for their states.

SaarLB has not received any state support and therefore is notundergoing any restructuring or compensatory demands from the ECalthough it may be indirectly affected by the EC approval of stateaid for BayernLB. In addition, a change in its ownershipstructure is possible in the near term, with the state of Saarlandplanning to take up some of BayernLB's stake.

The rating actions follow a comprehensive review of the GermanLandesbank sector, in which Fitch has investigated the keyparameters that will influence the strength of external support inthe foreseeable future. These include the severity ofshortcomings exposed by the current adverse economic conditions;the amount of external support needed and received since theoutbreak of the crisis; the suitability of the restructuringprocesses to address the key issues faced by the banks; thesustainability of their resulting business models; and (in mostcases still awaited) compensatory measures imposed by the EC inreturn for the state help received. The conclusions of the reviewwill be published in an upcoming report.

ESCADA AG: Insolvency Petition Cues Moody's to Withdraw Ratings---------------------------------------------------------------Moody's Investors Service has withdrawn the ratings of ESCADA AGfollowing the company's decision to file an insolvency petitionwith the Municipal Court of Munich, on August 13, 2009.

These ratings are withdrawn:

* Corporate Family Rating of Ca

* Probability of Default Rating of D

* Senior unsecured rating on the EUR200 million notes due 2012 of Ca

The last rating action on ESCADA was on August 14, 2009, whenMoody's downgraded the company's Probability of Default Rating toD from Ca following the company's insolvency petition.

ESCADA, headquartered in Munich, is one of the leading Europeanmanufacturers and distributors of ready-to-wear high-end apparelfor women. In the financial year ended 31 October 2008, thecompany reported consolidated sales of EUR582 million and EBITDAof EUR8.2 million.

Bloomberg relates the EU's competition commissioner met theFlemish leader following concerns that a sale of Opel to MagnaInternational Inc. would shift jobs to Germany from plants inBelgium, Spain and the U.K.

According to Bloomberg, Mr. Peeters said Ms. Kroes "underlinedthat it's very important that the examination will be very severeand that economic elements are the only elements that can be inthis dossier and when there are political elements that there willbe a very strong and very clear conclusion."

European heads of government and state may discuss the Opelsituation at a meeting in Brussels today, Sept. 17, Bloombergnotes.

As reported in the Troubled Company Reporter-Europe on Sept. 15,2009, the EU's competition commissioner warned Germany against any"protectionist motives" in its support plan for GM's Opel unit asthe carmaker's new owner announced plans to cut about 10,500 jobs.Ms. Kroes, as cited by Bloomberg, said no job or investmentconditions are allowed to be tied to the aid by the government ofGerman Chancellor Angela Merkel, who is seeking re-election in twoweeks. Bloomberg disclosed Germany must submit its restructuringplan for GM's Opel unit to the European Commission. According toBloomberg, the commission said it hasn't been formally notified ofGermany's plan to provide Opel with EUR3 billion (US$4.38 billion)in loan guarantees. "Such conditions would create unacceptabledistortions in the internal market and could trigger a subsidyrace which would significantly damage the European economy in thepresent delicate moment," Bloomberg quoted Ms. Kroes as saying."We will be scrutinizing the process very carefully to make sureit is based on commercial considerations."

Sale

John Reed at The Financial Times reports GM chief executive FritzHenderson defended his decision to sell 55% of Opel to Magna andSberbank and and secure EUR1.5 billion (US$2.2 billion) of Germanbridge financing. Mr. Henderson, as cited by the FT, said thatwhile the sale had "hurt" Opel's image among its Europeancustomers, Opel would otherwise have had to file for insolvency inMay as GM itself was preparing its US bankruptcy filing.Mr. Henderson confirmed Magna's plans to cut 10,500 jobs or abouta fifth of Opel's workforce in Europe. GM's plant in Antwerp was"at risk" of being shut down, Mr. Henderson confirmed, although nofinal decision had been taken to close it, the FT notes.

The FT relates Mr. Henderson said the sale would see finalagreements signed by early next month, but could take until yearend to close -- up to a month longer than the end of Novemberdeadline GM set last week.

Job Cuts

Suzzy Jagger at The Times reports Tony Woodley, the joint generalsecretary of Unite, warned Tuesday that the fate of the Vauxhallworkforce was by no means certain. The trade union leader, ascited by the Times, said: "As of right now, there are no long-termcommitments for either Ellesmere Port or Luton. If we listen towhat Magna has actually said, it has committed to nothing beyond2013."

Nikki Tait and Stanley Pignal at The Financial Times reportssenior Spanish government officials met union representatives fromOpel and regional politicians in Madrid yesterday to work out thenext move against plans to cut output at the Figueruelas plantnear the northern city of Zaragoza. Unions called for a protestrally on Saturday against a possible 1,700 job losses, the FTrelates.

Links

Daniel Schafer and Bernard Simon at The Financial Times reportMagna’s plans to take a majority stake in Opel triggered abacklash on Tuesday when German carmakers Volkswagen and BMWvoiced unease over the deal and warned that they would reviewlinks with the Canadian car parts supplier. According to the FT,Ferdinand Piech, VW chairman, said that Europe's largest carmakerwould consider shifting business to other car parts makers. "Weas a group do not like it when our suppliers become our rivals,"the FT quoted the grandson of Ferdinand Porsche as saying.

Friedrich Eichiner, BMW chief financial officer, voiced similarconcerns. Mr. Eichiner, as cited by the FT, said "Magna hasalways been a strong supplier for us. But Magna will now become acompetitor. This is a new situation, which we will have toassess. We will not put into question any running contracts withMagna. But where we see conflicts of interests we might in thefuture decide against Magna."

The group's executives will meet customers in Europe and Asiaduring the next few weeks to try to allay concerns about the partsmaker's proposed stake in Opel, the FT notes.

About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufacturescars and trucks in 35 countries. In 2007, nearly 9.37 million GMcars and trucks were sold globally under the following brands:Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStarsubsidiary is the industry leader in vehicle safety, security andinformation services.

GM Europe is based in Zurich, Switzerland, while General MotorsLatin America, Africa and Middle East is headquartered in Miramar,Florida.

As reported by the Troubled Company Reporter, GM reported net lossof US$6.0 billion, including special items, in the first quarterof 2009. This compares with a reported net loss of US$3.3 billionin the year-ago quarter. As of March 31, 2009, GM hadUS$82.2 billion in total assets and US$172.8 billion in totalliabilities, resulting in US$90.5 billion in stockholders'deficit.

General Motors Corporation and three of its affiliates filed forChapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead CaseNo. 09-50026). General Motors changed its name to MotorsLiquidation Co. following the sale of its key assets to a company60.8% owned by the U.S. Government.

Bankruptcy Creditors' Service, Inc., publishes General MotorsBankruptcy News. The newsletter tracks the Chapter 11 proceedingundertaken by General Motors Corp. and its various affiliates.(http://bankrupt.com/newsstand/or 215/945-7000)

HEIDELBERGCEMENT AG: Capital Increase Won't Affect Moody's Rating-----------------------------------------------------------------Fitch Ratings said that there will be no immediate rating impacton Germany-based HeidelbergCement AG's Long-term Issuer Defaultrating of 'B' following HC's announcement on 13 September of aplanned capital increase. The Outlook is Negative and HC's andsubsidiary Hanson plc's senior unsecured debt remains at 'CCC'.The Recovery Rating on the senior unsecured debt is 'RR6',reflecting poor recovery prospects in the event of a default, inlight of high total debt levels and over 55% of total debt beingsecured. HC's Short-term IDR remains at 'B'.

"While a capital increase would be positive for HeidelbergCement'screditors, there is no certainty that the effort will besuccessful as the offering is not underwritten," says ElisabettaZorzi, Senior Director in Fitch's Corporate group. "Further,major refinancing risk persists with banks benefitting from asecurity package, complicating HeidelbergCement's access to newfunding."

HC plans to increase share capital by 50% through the issuance of62.5 million new shares against cash contributions, in a privateplacement with institutional investors. No price has been set.The total proceeds will be used to partly repay the company'sexisting indebtedness. This exercise is part of management'seffort to restore HC's credit profile through measures includingasset disposals and capital increase. In June 2009 HC obtained aEUR8.7bn secured syndicated loan agreement with maturity on 15December 2011, mitigating the refinancing risk of the EUR5bnHanson term B acquisition loan that had maturity in May 2010.

Fitch will monitor developments and assess the impact on HC'scredit profile following the settlement date expected on 9 October2009. Positive rating pressure could occur depending on theamount of cash raised.

HC has also announced that concurrently with the placement of thenew shares from the capital increase, up to 62.5 million existingshares held by the majority shareholder, the Merckle family andrelated entities as well as certain banks that hold shares in thecompany, will also be placed with institutional investors. Thefinal amount to be placed is presently uncertain and willdetermine the extent of dilution of the current majorityshareholder which, due to its own financial constraints, hasweighed negatively on HC's credit profile.

The Negative Outlook reflects Fitch's view that the proposedcapital increase might not be sufficient to achieve material debtreduction and that HC's credit metrics will continue to bestretched. Sizable asset disposals are likely to be challengingin the coming 12 months given continuing difficult financialmarket conditions. The agency also views the concentration of thedebt maturity profile in December 2011 as a key rating risk,especially in view of the complex creditor inter-relationshiparising from the presence of secured lenders. In this context,access to debt capital markets may prove challenging. Fitch'slatest forecasts for HC include a potential mid-teen percentagepoint decline in revenue in 2009 and a flat performance in 2010,as well as deteriorating EBITDA margins in 2009 before a slightrecovery in 2010. Under this scenario expected lower cash flowfrom operations is likely to result in only slightly positive freecash flow compared to a five-year average of 4% free cashflow/revenue.

Like other global building materials players, HC's Q209 resultscontinued to be negatively impacted by weak trading conditionsstemming from the global economic crisis. Revenue of EUR5.4bn inH109 was down 23% compared with H108, due to negative tradingconditions in eastern Europe and central Asia, as well as Spain,the UK, Turkey, and North America. HC's operating EBITDA margindeclined to 8.5 % in H109 from 13% in H108 due to a significantworsening of profitability in Europe and North America. Whilecost cutting and efficiency measures have been implemented, HCexpects a decline in operating income in 2009 as a result of theprevailing global downturn.

HSH NORDBANK: Fitch Keeps 'D/E' Individual Rating; IDR on RWN-------------------------------------------------------------Fitch Ratings placed the Long-term Issuer Default Ratings ofBayerische Landesbank, HSH Nordbank, Landesbank Baden-Wuerttemberg, Landesbank Saar and WestLB AG on Rating WatchNegative. In addition, the Short-term IDRs of BayernLB, WestLB,LBBW and SaarLB were placed on RWN as well as the Support RatingFloors of all five banks.

The five banks' IDRs remain at their Support Rating Floors and arebased on Fitch's view of the extent to which the respective Germanregional governments would provide support in case of need. Anyownership change could reduce the likelihood of state support forthe banks, compounding the effects of the gradual expiration ofthe vast majority of grandfathered guaranteed debt up until 2015.However, Fitch anticipates that state support will still remainstrong enough for all of the Landesbanks, with the possibleexception of WestLB, to remain within the single 'A' range ('A-','A' or 'A+') in the foreseeable future.

The RWN reflect the possibility of ownership change and a relateddiminution in the importance of these banks to their regionalstate owners. BayernLB, HSH, LBBW and WestLB have receivedsubstantial support from their owners in the form of capitalinjections and guarantees after they suffered a material impactfrom the financial crisis. For the first three banks, thesesupport measures are currently subject to a review and approvalprocess by the European Commission (EC), which is expected tocommunicate its decision in the coming months. A downgrade ofthese banks' IDRs is likely if the EC's conditions include achange in ownership. WestLB's state aid has already been approvedby the EC with conditions imposed, specifically the change ofownership until the end of 2011. While the RWN on BayernLB, HSH,LBBW and SaarLB will be reviewed by Fitch, as the EC's decisionson each of HSH, BayernLB and LBBW are announced, WestLB's RWN willremain pending until details of its future ownership structurebecome clear -- in 2011 at the latest. The RWN on SaarLB's IDRsreflects the pressures on its 75.1% parent BayernLB torestructure.

Fitch believes that the sustainability of all Landesbanken'sbusiness models will continue to rely on direct or indirect stateownership and/or institutional support from the savings banks inthe medium term, as the agency will outline in an upcoming report.

Even in a stabilised economic environment, the combination of theLandesbanken's weak stand-alone quality and reliance on wholesalefunding sources will likely prevent them from funding their (evenreduced) balance sheets on competitive terms on their own merits,depending on their various sources of funding. Therefore,developments in the restructuring processes of BayernLB, HSH andLBBW may result in negative rating actions for each bank over alonger period of time after the EC's decisions on the respectivebanks. However, Fitch notes that the pressure on theseLandesbanken's IDRs could ease if there are clear signs that achange of ownership structure is neither given as a condition ofapproving state aid by the EC nor likely to arise willingly by theowners. More certainty in this respect is unlikely before thereare more tangible signs that the economic crisis, and accompanyingdeterioration of asset quality, is nearing its end.

HSH has suffered most from the global financial and economiccrisis. It has received comprehensive support measures from itsstate owners and has initiated an ambitious restructuring process.This increases the uncertainty about the bank's ability to managethe restoration of a viable business model post-restructuring.HSH's majority owners, the relatively small regional states ofHamburg (HH) and Schleswig-Holstein (SH), went to great lengths torescue their Landesbank, constraining their own financialflexibility as a result. The local savings banks, HSH's minorityowners, largely disengaged themselves by not participating in thelatest capital increase. Fitch remains confident of the abilityof both states to provide support if needed, as underlined bytheir 'AAA' ratings. However, if the EC were to order the sale ofHSH, the regional public sector may not insist on retaining asubstantial stake in HSH.

WestLB had required state support even prior to the currentcrisis. As such its restructuring process is ahead of its peers.It was the first to ring-fence a considerable volume of troubledand non-core assets into a segregated run-off portfolio. It isalso the only Landesbank that has announced its intention to usethe bad bank scheme recently adopted by the federal parliament.The EC has completed its review of the state aid received andimposed an ownership change by end-2011. Fitch believes that, inview of the enduring recessionary environment and protracted saleendeavours, uncertainty will continue, potentially furtherunsettling potential clients and long-term debt investors. Thismay reduce the bank's chances of emerging as a strong goingconcern, making it unlikely that WestLB's owners will manage toattract interest from a majority private investor.

BayernLB and, to a lesser extent, LBBW, might also face stringentrestructuring requirements and ownership changes. Even ifpressure for these does not come from the EC this time around, arenewed need for capital injections, although currently notexpected, from the owner states cannot be fully excluded, due tothe two banks' considerable loan portfolios and potential formounting credit losses. This, or the potential implementation ofa bad bank model, would in turn trigger a new review by the EC,increasing the risk of ownership change. However, the strongerfranchises held by the two south German banks may enable them toachieve faster recoveries, reducing the probability that theywould need renewed support. Fitch also expects BayernLB's andLBBW's core franchises to remain important to their respectiveregional governments even after any potential sale or merger (fullor partial) with another Landesbank. Bayern LB and LBBW's IDRsare unlikely to fall below 'A-' in the foreseeable future, due tothe superior financial flexibility of their regional governments,Bavaria and Baden-Wuerttemberg, as well as the strategic relevanceof these banks for their states.

SaarLB has not received any state support and therefore is notundergoing any restructuring or compensatory demands from the ECalthough it may be indirectly affected by the EC approval of stateaid for BayernLB. In addition, a change in its ownershipstructure is possible in the near term, with the state of Saarlandplanning to take up some of BayernLB's stake.

The rating actions follow a comprehensive review of the GermanLandesbank sector, in which Fitch has investigated the keyparameters that will influence the strength of external support inthe foreseeable future. These include the severity ofshortcomings exposed by the current adverse economic conditions;the amount of external support needed and received since theoutbreak of the crisis; the suitability of the restructuringprocesses to address the key issues faced by the banks; thesustainability of their resulting business models; and (in mostcases still awaited) compensatory measures imposed by the EC inreturn for the state help received. The conclusions of the reviewwill be published in an upcoming report.

This covered bond program has been established in Germany underthe general German law, in contrast to other German covered bondswhich rely on specific legislation (the Pfandbrief Act).

Euro 20 million Series 2 matures in September 2019 and bears afixed coupon.

Series 2 is backed by a secured loan granted to a German savingsbank (the borrower) -- following the "Funding Alternative" underthe program. This loan is in turn backed by a residentialmortgage loan portfolio that was originated by the borrower.

The Covered Bond investors benefit from both the credit strengthof LBB and the rights of security in respect of the Cover Pool.The Cover Pool is supported by:

a) Direct recourse to the borrower through the pledge of a secured loan for the benefit of the noteholders and;

b) A pool of residential loans originated by the borrower if the borrower fails to meet its obligations under the secured loan agreement;

The program has been structured using techniques designed toensure that the Cover Pool is ring-fenced in the event of Issuerinsolvency. The program has been established under general Germanlaw, in contrast to many other European covered bonds which relyon specific legislation. The Issuer has incorporated a number ofsecuritization techniques in this program, which has enabled it tocreate a covered bond that has similar characteristics to coveredbonds backed by a specific legal framework.

Structured features included in Series 2, which mitigate creditrisks found in many covered bonds that rely on specific coveredbond legislation, include a built-in extension to the maturity ofthe notes (thus mitigating refinancing risk) and, the matching ofthe maturities of the pledged secured loan with those of the notes(thus mitigating market and refinancing risks).

As is the case with other covered bonds, Moody's considers thetransaction to be linked to the credit strength of the Issuer,particularly from a default probability perspective. Should theIssuer credit strength deteriorate, all other things being equalthe rating of the Covered Bonds could be expected to come underpressure.

In case of deterioration of the Issuer rating or the pool quality,the Issuer would have the ability, but not the obligation, toincrease the over-collateralization in the Cover Pool. Failure toincrease the level of over-collateralization under thesecircumstances could lead to negative rating actions.

The rating assigned by Moody's addresses the expected loss posedto investors. Moody's ratings address only the credit risksassociated with the transaction. Other non-credit risks have notbeen addressed, but may have a significant effect on yield toinvestors.

RATIOPHARM GMBH: May Be Sold in Pieces to Repay Bank Loans----------------------------------------------------------Germany's Merckle family may have to sell generic-drug makerRatiopharm GmbH in pieces to raise as much as EUR3 billion(US$4.4 billion) to pay off bank loans, Aaron Kirchfeld atBloomberg News reports, citing three people familiar with theplan.

According to Bloomberg, the people, who declined to be identifiedbecause the plans aren't public, said Ratiopharm lendersCommerzbank AG and Royal Bank of Scotland Group Plc, which aremanaging the sale, are considering taking bids for the drugmaker'sfour main business units alongside offers for the entire companyafter they send out sale documents as early as this month.

Bloomberg relates Ratiopharm spokesman Markus Braun saidpreparations for the sale process aren't finished and decisions onthe form and timing are scheduled to be made this week, afterwhich VEM and Ratiopharm will notify the public and employees.

Bloomberg notes the people said the Ratiopharm German drug brand,a second, smaller German brand, the BioGenerix unit andRatiopharm's Canadian business may be sold individually to try tomaximize the proceeds from the sale.

WESTLB AG: Fitch Affirms 'E' Individual Rating; IDR on RWN----------------------------------------------------------Fitch Ratings placed the Long-term Issuer Default Ratings ofBayerische Landesbank, HSH Nordbank, Landesbank Baden-Wuerttemberg, Landesbank Saar and WestLB AG on Rating WatchNegative. In addition, the Short-term IDRs of BayernLB, WestLB,LBBW and SaarLB were placed on RWN as well as the Support RatingFloors of all five banks.

The five banks' IDRs remain at their Support Rating Floors and arebased on Fitch's view of the extent to which the respective Germanregional governments would provide support in case of need. Anyownership change could reduce the likelihood of state support forthe banks, compounding the effects of the gradual expiration ofthe vast majority of grandfathered guaranteed debt up until 2015.However, Fitch anticipates that state support will still remainstrong enough for all of the Landesbanks, with the possibleexception of WestLB, to remain within the single 'A' range ('A-','A' or 'A+') in the foreseeable future.

The RWN reflect the possibility of ownership change and a relateddiminution in the importance of these banks to their regionalstate owners. BayernLB, HSH, LBBW and WestLB have receivedsubstantial support from their owners in the form of capitalinjections and guarantees after they suffered a material impactfrom the financial crisis. For the first three banks, thesesupport measures are currently subject to a review and approvalprocess by the European Commission (EC), which is expected tocommunicate its decision in the coming months. A downgrade ofthese banks' IDRs is likely if the EC's conditions include achange in ownership. WestLB's state aid has already been approvedby the EC with conditions imposed, specifically the change ofownership until the end of 2011. While the RWN on BayernLB, HSH,LBBW and SaarLB will be reviewed by Fitch, as the EC's decisionson each of HSH, BayernLB and LBBW are announced, WestLB's RWN willremain pending until details of its future ownership structurebecome clear -- in 2011 at the latest. The RWN on SaarLB's IDRsreflects the pressures on its 75.1% parent BayernLB torestructure.

Fitch believes that the sustainability of all Landesbanken'sbusiness models will continue to rely on direct or indirect stateownership and/or institutional support from the savings banks inthe medium term, as the agency will outline in an upcoming report.

Even in a stabilised economic environment, the combination of theLandesbanken's weak stand-alone quality and reliance on wholesalefunding sources will likely prevent them from funding their (evenreduced) balance sheets on competitive terms on their own merits,depending on their various sources of funding. Therefore,developments in the restructuring processes of BayernLB, HSH andLBBW may result in negative rating actions for each bank over alonger period of time after the EC's decisions on the respectivebanks. However, Fitch notes that the pressure on theseLandesbanken's IDRs could ease if there are clear signs that achange of ownership structure is neither given as a condition ofapproving state aid by the EC nor likely to arise willingly by theowners. More certainty in this respect is unlikely before thereare more tangible signs that the economic crisis, and accompanyingdeterioration of asset quality, is nearing its end.

HSH has suffered most from the global financial and economiccrisis. It has received comprehensive support measures from itsstate owners and has initiated an ambitious restructuring process.This increases the uncertainty about the bank's ability to managethe restoration of a viable business model post-restructuring.HSH's majority owners, the relatively small regional states ofHamburg (HH) and Schleswig-Holstein (SH), went to great lengths torescue their Landesbank, constraining their own financialflexibility as a result. The local savings banks, HSH's minorityowners, largely disengaged themselves by not participating in thelatest capital increase. Fitch remains confident of the abilityof both states to provide support if needed, as underlined bytheir 'AAA' ratings. However, if the EC were to order the sale ofHSH, the regional public sector may not insist on retaining asubstantial stake in HSH.

WestLB had required state support even prior to the currentcrisis. As such its restructuring process is ahead of its peers.It was the first to ring-fence a considerable volume of troubledand non-core assets into a segregated run-off portfolio. It isalso the only Landesbank that has announced its intention to usethe bad bank scheme recently adopted by the federal parliament.The EC has completed its review of the state aid received andimposed an ownership change by end-2011. Fitch believes that, inview of the enduring recessionary environment and protracted saleendeavours, uncertainty will continue, potentially furtherunsettling potential clients and long-term debt investors. Thismay reduce the bank's chances of emerging as a strong goingconcern, making it unlikely that WestLB's owners will manage toattract interest from a majority private investor.

BayernLB and, to a lesser extent, LBBW, might also face stringentrestructuring requirements and ownership changes. Even ifpressure for these does not come from the EC this time around, arenewed need for capital injections, although currently notexpected, from the owner states cannot be fully excluded, due tothe two banks' considerable loan portfolios and potential formounting credit losses. This, or the potential implementation ofa bad bank model, would in turn trigger a new review by the EC,increasing the risk of ownership change. However, the strongerfranchises held by the two south German banks may enable them toachieve faster recoveries, reducing the probability that theywould need renewed support. Fitch also expects BayernLB's andLBBW's core franchises to remain important to their respectiveregional governments even after any potential sale or merger (fullor partial) with another Landesbank. Bayern LB and LBBW's IDRsare unlikely to fall below 'A-' in the foreseeable future, due tothe superior financial flexibility of their regional governments,Bavaria and Baden-Wuerttemberg, as well as the strategic relevanceof these banks for their states.

SaarLB has not received any state support and therefore is notundergoing any restructuring or compensatory demands from the ECalthough it may be indirectly affected by the EC approval of stateaid for BayernLB. In addition, a change in its ownershipstructure is possible in the near term, with the state of Saarlandplanning to take up some of BayernLB's stake.

The rating actions follow a comprehensive review of the GermanLandesbank sector, in which Fitch has investigated the keyparameters that will influence the strength of external support inthe foreseeable future. These include the severity ofshortcomings exposed by the current adverse economic conditions;the amount of external support needed and received since theoutbreak of the crisis; the suitability of the restructuringprocesses to address the key issues faced by the banks; thesustainability of their resulting business models; and (in mostcases still awaited) compensatory measures imposed by the EC inreturn for the state help received. The conclusions of the reviewwill be published in an upcoming report.

FAGE DAIRY: Moody's Changes Outlook on 'B3' Rating to Stable------------------------------------------------------------Moody's Investors Service has changed the outlook on the B3corporate family rating and B3 senior unsecured rating of FageDairy Industry S.A. to stable from negative.

"Fage has strengthened its position within the B3 rating categoryin recent quarters and its operating performance has shownresilience despite the difficult market conditions in its coremarkets," said Stefano del Zompo, lead analyst for Fage atMoody's.

For the first six months of 2009, Fage reported an operatingprofit of approximately EUR12 million, up from a loss ofEUR5 million for the same period last year. Moody's recognisesthat the profit improvement was achieved on the back of costsavings stemming from the U.S. plant and divestment from the loss-making cheese businesses -- actions that have mitigated the costof continued intensive promotional activities in Greece. Thecompany further benefited from reduced milk prices.

The stabilization of the company's outlook also reflects animproved liquidity position. The company's on-balance-sheet cashwas in excess of EUR36.4 million as of June 2009, up fromEUR21.8 million at YE2008. The increase was mainly the result ofhigher profitability and reduced capital expenditures after thecompletion of the US plant. Free cash flow generation and on-balance-sheet cash, together with availability of aroundEUR8 million under the receivable facility and EUR2 million underthe company's committed credit facility, are expected to besufficient to fund around EUR6.5 million in debt amortizationscheduled for 2009 and capital expenditures of aroundEUR24 million for the next twelve months. However, Moody's notesthat without a significant increase in profitability and cash flowgeneration the company might find it difficult to make the largedebt payments scheduled in 2011 and in 2012 and then again in 2015when the Notes will be due.

The stable outlook reflects Moody's expectation that Fage willmaintain its improved performance in the medium term despitechallenging domestic and international markets. Any upgrade ofthe rating would require Fage to sustain an EBITDA margin above10% leading to a Debt to EBITDA ratio below 6.0x. Conversely,Moody's could consider changing the outlook back to negative ifcredit metrics declined as a result of a weaker operationalperformance such that the operating margin reverted to the lowsingle-digit range and Debt to EBITDA increased above 6.5x.

Moody's last rating action was implemented on April 1, 2008, whenMoody's downgraded Fage's ratings and probability of default to B3from B2.

Headquartered in Athens, Fage is one of the leading dairycompanies in Greece, with activities in the yoghurt, refrigeratedmilk and packaged cheese segments. It has also developed itsactivities in the US, the UK and Italy. For the first six monthsof 2009, Fage reported consolidated net sales of approximatelyEUR159 million and operating profit of around EUR12 million.

The rating action reflects the effect of Fitch's updated GlobalRating Criteria for Corporate CDOs (published in April 2008) onthe notable obligor concentration, the negative credit migrationin the portfolio since closing in August 2007, and the agency'sexpectation that the portfolio will experience increasing defaultsand delinquencies. These negative performance factors haveoutweighed the increase in the credit enhancement level of eachrated tranche following the portfolio amortization after thetransaction became static in July 2008. As the arranger hasinformed Fitch of upcoming changes to the transaction within thenext few months, the notes have been placed on Rating WatchNegative until the timely completion of the planned restructuring.

The resolution of the RWN will incorporate any changes made to theportfolio or the transaction along with additional portfoliomigration. The arranger is expected to complete the restructuringof the transaction over the next few months. If there are nosignificant changes prior to the resolution of the RWN, the noteswill likely be downgraded as indicated below:

Per the latest pool cut as of July 2009, the proportion of loanswith sub-investment grade ratings based on the initial mapping ofthe banks' internal ratings to Fitch's IDR scale has more thandoubled to 31.9% from 12.5%, excluding defaulted assets. Theexposure to the largest obligor and top 10 borrowers has increasedto 3.6% and 24.1% of the portfolio notional, respectively,compared to 1.8% and 12.7%, respectively, at closing. Theportfolio is concentrated in Austria (38%), Italy (20%) andGermany (15%).

Given the current economic climate in the eurozone, Fitch expectsdefaults and delinquencies to increase from their currently lowlevels. Cumulative defaults have already risen since April 2009to represent 0.8% of the initial portfolio balance, whilst thecurrent delinquency rate (loans overdue by more than 30 days) was0.14% as of July 2009.

As of July 2009, the portfolio consisted of 630 loans to 390obligor groups and the balance has decreased by 47% since closingto EUR3,290 million excluding defaulted assets. The originatingbanks, also the servicers, use their internal credit ratingsystems to assess the loans. Fitch has reviewed the banks'internal rating systems and mapped the internal rating categoriesto Fitch's IDR scale at closing of the transaction.

According to Times Online, the current rescue plans would seeIN&M's bondholders issued with new shares as part-payment fortheir GBP200 million of outstanding, diluting Mr. O'Brien to about13%.

On Sept. 15, 2009, the Troubled Company Reporter-Europe, citingThe Financial Times, reports that IN&M is considering giving itsbondholders 45% of the company's equity to extinguish part oftheir debt. Citing people with knowledge of the plan, the FTdisclosed the plan, which has yet to be agreed by the company,lenders and two key shareholders, would avoid the need forshareholder approval because the share issue has already beenauthorized. According to the FT, talks between IN&M and itscreditors are now focused on how much bond debt will be exchangedfor the 45% stake and how much to raise in a rights offering torepay the balance of the EUR200 million (GBP171 million) bond debtthat IN&M failed to repay in May.

About Independent News & Media

Headquartered in Dublin, Ireland, Independent News & Media PLC(ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and publishing of metropolitan, national, provincial and regionalnewspapers in Australia, India, Ireland, New Zealand, South Africaand the United Kingdom. It also has radio operations in Australiaand New Zealand, and outdoor advertising operations in Australia,New Zealand, South-East Asia and across Africa. The Company alsohas online operations across each of its principal markets. TheCompany has three business segments: printing, publishing, onlineand distribution of newspapers and magazines and commercialprinting; radio, and outdoor advertising. INM publishes over 200newspaper and magazine titles, delivering a combined weeklycirculation of over 32 million copies with a weekly audience ofover 100 million consumers. In March 2008, it acquired The SligoChampion. During the year ended December 31, 2007, the Companyacquired the remaining 50% interest in Toowoomba Newspapers PtyLtd.

RMF EURO: Moody's Confirms Rating on Class V Notes at 'Caa1'------------------------------------------------------------Moody's Investors Service has taken these rating actions on notesissued by RMF EURO CDO V Plc. The Combination Note P (principalonly) and the Combination Note Q (principal and interest) remainAaa due to the protection provided by associated OAT strips.

This transaction is a managed high yield collateralized loanobligation with exposure to predominantly European senior securedloans, as well as some mezzanine and high yield bonds.

The rating actions reflect Moody's revised assumptions withrespect to default probability and the calculation of thediversity score as described in the press release datedFebruary 4, 2009, titled "Moody's updates key assumptions forrating CLOs." These revised assumptions have been applied to allcorporate credits in the underlying portfolio, the revisedassumptions for the treatment of ratings on "Review for PossibleDowngrade", "Review for Possible Upgrade", or with a "NegativeOutlook" being applied to those corporate credits that arepublicly rated.

Moody's also notes that a material proportion of the collateralpool consists of debt obligations whose credit quality has beenassessed through Moody's credit estimates. As credit estimates donot carry credit indicators such as ratings reviews and outlooks,a stress of a quarter notch-equivalent assumed downgrade wasapplied to each of these estimates.

According to Moody's, the rating actions taken on the notes arealso a result of credit deterioration of the underlying portfolio.This is observed through a decline in the average credit rating asmeasured through the portfolio weighted average rating factor'WARF' (currently 2893), an increase in the amount of defaultedsecurities (currently 5% of the portfolio), an increase in theproportion of securities from issuers rated Caa1 and below(currently 16.7% of the portfolio), and a failure of all but thesenior par value tests. These measures were taken from the recenttrustee report dated August 10, 2009.

Moody's notes that the upgrade action has incorporated theaforementioned stresses as well as credit deterioration in theunderlying portfolio. However, the action reflect updatedanalysis indicating that the impact of these factors on theratings of these notes is not as negative as previously assessedduring Stage I of the deal review in March. The currentconclusions stem from comprehensive deal-level analysis completedduring Stage II of the ongoing CLO surveillance review, whichincluded an in-depth assessment of results from Moody'squantitative CLO rating model along with an examination of deal-specific qualitative factors. By way of comparison, during StageI Moody's took rating actions that were largely the result of aparameter-based approach (see press release dated March 4, 2009,titled "Moody's puts all but senior-most CLO tranches on reviewfor downgrade").

In addition to the quantitative factors that are explicitlymodelled, qualitative factors are part of the rating committeeconsiderations. These qualitative factors include the structuralprotections in each transaction, the recent deal performance inthe current market environment, the legal environment, specificdocumentation features, the collateral manager's track record, andthe potential for selection bias in the portfolio. Allinformation available to rating committees, includingmacroeconomic forecasts, input from other Moody's analyticalgroups, market factors, and judgments regarding the nature andseverity of credit stress on the transactions, may influence thefinal rating decision.

The downgrades reflect the effect of Fitch's updated 'GlobalRating Criteria for Corporate CDOs' on the notable obligorconcentration, the negative credit migration in the portfoliosince closing in July 2007, and Fitch's expectation of risingdefaults and delinquencies.

The transaction is a partially-funded revolving syntheticcollateralized loans obligation referencing a predominantly Germanportfolio of senior unsecured obligations of medium and largecorporate entities originated and credit-assessed by the formerDresdner Bank AG which was recently acquired by Commerzbank AG.

As of 31 May 2009, the proportion of loans to borrowers assessed'8' and worse on the internal rating scale of the former DresdnerBank AG has risen to 21.4% (excluding defaulted assets) from 11.9%at closing in July 2007. The exposure to the largest obligor andtop 10 borrowers has increased to 1.7% and 12.9% of the portfolionotional, respectively, compared to 0.8% and 7.2%, respectively,at closing. The largest country concentration is in Germany(89.1%), whereas the largest industry concentration is in theindustrial and manufacturing sector (21.5%).

Given the unfavorable economic conditions in Germany, Fitchexpects defaults and delinquencies to increase from the currentlylow levels. In this transaction, cumulative defaults as apercentage of the initial portfolio balance were 0.3%, whilst thecurrent delinquency rate (loans overdue by more than 30 days) was0.1% as of June 2009.

The transaction features a three-year replenishment period endingin June 2010, subject to the eligibility and replenishmentcriteria, which include the Fitch Vector test, a weighted averagelife covenant, as well as country-specific and rating-dependentdebtor group concentration limits. Due to the breach of onereplenishment criterion the pool has not been replenished sinceMay 2009. This has resulted in the reduction of 11% of theportfolio balance. Additionally, the debtor group concentrationlimit is currently breached. However, the portfolio can bereplenished up to the initial balance should the replenishmentconditions be fulfilled again.

According to the June 2009 investor report, the portfolio balancestood at EUR1,954.4 million (excluding defaulted assets) andconsisted of 1,211 loans to 566 obligor groups. The formerDresdner Bank AG, as the originator and servicer, uses itsinternal credit rating system to assess the loans. Fitch hasreviewed the bank's internal rating system and mapped the internalrating categories to Fitch's IDR scale at the closing of thetransaction.

Class A and B's Stable Outlooks reflect their ability to withstandFitch's stress scenarios. The Negative Outlooks assigned to theremaining four classes reflect their relatively lower creditenhancement levels which make them more vulnerable to potentialnegative asset migration risk and defaults.

STANTON ABS: Moody's Cuts Rating on Class A-4 Notes to 'Ca'-----------------------------------------------------------Moody's Investors Service has taken these rating actions on notesissued by Stanton ABS I p.l.c.

The transaction is a managed cashflow CDO backed mainly by globalABS, RMBS, CMBS, CLO and other CDO assets.

The event of default that occurred on June 2, 2009, asreported by the trustee, due to a failure of the Class A-3overcollateralization ratio to be greater than or equal to 96% isno longer continuing, but the ratio remains low: the Class A-3overcollateralization ratio was 96.43% as of August 28, 2009. Forthe purpose of calculating the numerator of theovercollateralization test, assets rated below Baa3 are carried ata rating-based haircut and a further deterioration of the creditquality of the portfolio could potentially trigger another eventof default.

According to Moody's, the rating actions taken on the notes are aresult of credit deterioration of the underlying portfolio. Thisis observed through a decline in the average credit rating asmeasured by the portfolio weighted average rating factor 'WARF'(currently 1079), an increase in the amount of defaultedsecurities (currently 4.36% of the portfolio), an increase in theproportion of securities from issuers rated Caa1 and belowexcluding defaulted assets (currently 4.17% of the portfolio).Currently interest payments on Class A-4 and below are alldeferring and par coverage tests are all failing. This portfolioalso has a 15.70% concentration on European CLOs which are allcurrently under review for further downgrade, with equivalentweighted average rating of B3. These measures were taken from therecent trustee report dated August 28, 2009. Moody's alsoperformed a number of sensitivity analyses, includingconsideration of a further decline in portfolio WARF quality.

In addition to the quantitative factors that are explicitlymodelled, qualitative factors are part of the rating committeeconsiderations. These qualitative factors include the structuralprotections in each transaction, the recent deal performance inthe current market environment, the legal environment, specificdocumentation features, the collateral manager's track record.All information available to rating committees, includingmacroeconomic forecasts, input from other Moody's analyticalgroups, market factors, and judgments regarding the nature andseverity of credit stress on the transactions, may influence thefinal rating decision.

The downgrade of the junior classes reflects the uncertaintysurrounding upcoming loan maturities and, to a lesser extent, theimpact of the downturn in the European commercial real estatemarket on the two remaining loans in the portfolio.

The Prime Commercial loan, the largest loan in the portfolio at85.1%, matures in January 2010. The balloon risk is exacerbatedby the presence of a B-note which increases overall leverage andis likely to complicate a potential re-financing. The Alpha RealEstate loan (14.9%) matures in April 2010. The legal finalmaturity of the transaction is in January 2014, and in Fitch'sview, this should provide the servicer with sufficient time towork out the loans if they should fail to refinance.

The Prime Commercial loan is secured by two secondary qualityshopping centres located near Hamburg and Cologne in Germany,respectively. Based on a re-valuation of the properties conductedin December 2008, it is reported that there has been a decline of3% in overall asset value since December 2004. Given that almosta year has passed since the re-valuation of the properties, inFitch's opinion the collateral will have suffered a furtherdecline of approximately 14%. Despite the strong incomeperformance, Fitch believes that the secondary nature of the twoproperties and the high leverage of the B-note (Fitch estimates awhole loan LTV of 96%) create uncertainty surrounding thepotential refinancing of the Prime loan, which has been factoredinto the agency's analysis.

The Alpha Real Estate loan is secured by a well-located retailcentre in Berlin and a portfolio of residential units located inMunster, in the Lower Saxony region of Germany. The loan willhave slightly amortized to a reported exit LTV of 71.8% by April2010, compared with its current LTV of 72.8% based on November2004 valuations. Fitch estimates that a re-valuation undercurrent market conditions would result in a market value decline(MVD) of 13%, implying a Fitch exit LTV of 82.2%. In light of theincreased Fitch LTV, a successful refinancing at maturity couldprove difficult.

Food Holdings and Dairy Holdings Ltd. were two special purposeentities created by BofA. Their liquidators have sued the bank,claiming that it knew of the Parmalat fraud and should be forcedto pay hundreds of millions of dollars in notes to Parmalatinvestors that the vehicles issued.

Parmalat went bankrupt after revealing that a EUR3.95 billionaccount at Bank of America didn't exist.

Bank of America should be held liable for the 2003 collapse ofParmalat, lawyers for the two Cayman Island entities told U.S.District Judge Lewis Kaplan September 14, at the start of a US$500million civil trial, Bloomberg News said.

Liquidators for two special purpose vehicles created by Bank ofAmerica -- Food Holdings Ltd. and Dairy Holdings Ltd. -- latersued the bank, claiming it knew of the Parmalat fraud and shouldbe forced to pay hundreds of millions of dollars in notes toParmalat investors that the vehicles issued.

Parmalat S.p.A. and its Italian affiliates filed separatepetitions for Extraordinary Administration before the ItalianMinistry of Productive Activities and the Civil and CriminalDistrict Court of the City of Parma, Italy on December 24, 2003.Dr. Enrico Bondi was appointed Extraordinary Commissioner ineach of the cases. The Parma Court has declared the unitsinsolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.04-14268, in the United States Bankruptcy Court for the SouthernDistrict of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., ParmalatCapital Finance Ltd., and Food Holdings Ltd. Dairy Holdings andFood Holdings are Cayman Island special-purpose vehiclesestablished by Parmalat S.p.A. The Finance Companies are underseparate winding up petitions before the Grand Court of the CaymanIslands. Gordon I. MacRae and James Cleaver of Kroll (Cayman)Ltd. serve as Joint Provisional Liquidators in the cases. OnJanuary 20, 2004, the Liquidators filed Sec. 304 petition, CaseNo. 04-10362, in the United States Bankruptcy Court for theSouthern District of New York. In May 2006, the Cayman IslandCourt appointed Messrs. MacRae and Cleaver as Joint OfficialLiquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,Herlands Randolph, represent the Finance Companies in the Sec. 304case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'U.S. cases. On June 21, 2007, the U.S. Court granted Parmalatpermanent injunction.

According to Bloomberg News, the directors called a shareholders'meeting for Nov. 16 to appoint a new board.

Restructuring Plan

As reported in the Troubled Company Reporter-Europe on Sept. 10,2009, Bloomberg News, citing daily Il Sole 24 Ore, saidRisanamento submitted a restructuring plan to a Milan court.Bloomberg disclosed Il Sole said the plan, backed by 60% of thereal estate company's creditors, includes a EUR150-million(US$218 million) capital increase, the conversion of EUR350million of debt and the sale of assets, excluding property in NewYork and Paris. Risanamento was ordered to come up with the planin response to a prosecutor's statement in July that the real-estate company had failed.

About Risanamento SpA

Headquartered in Milan, Italy, Risanamento SpA --http://www.risanamentospa.it/-- is a company engaged in the real estate sector. It is part of the Zunino Group. Its mainactivities are real estate investments, real estate promotion anddevelopment. The Company provides its services through numeroussubsidiaries and associated companies, such as Milano Santa GiuliaSpA, Etoile ST. Florentin Sarl, Risanamento Europe Sarl and RIInvestimenti Srl. Risanamento operates in the real estatepromotion and development, and real estate investments sectors.The Company's main projects are the creation of the new MilanoSanta Giulia district, and the redevelopment of the former Falckarea in Sesto San Giovanni.

===================K A Z A K H S T A N===================

ARU LLP: Creditors Must File Claims by September 24---------------------------------------------------Creditors of LLP Trade-Manufacturing Company Aru have untilSeptember 24, 2009, to submit proofs of claim to:

The court commenced bankruptcy proceedings against the company onJuly 3, 2009.

KAPCHAGAI OIL: Creditors Must File Claims by September 24---------------------------------------------------------Creditors of LLP Kapchagai Oil have until September 24, 2009, tosubmit proofs of claim to:

The court commenced bankruptcy proceedings against the company onJune 19, 2009.

===================K Y R G Y Z S T A N===================

AUTO TRADE: Creditors Must File Claims by September 30------------------------------------------------------Foreign LLC Auto Trade is currently undergoing liquidation.Creditors have until September 30, 2009, to submit proofs of claimto:

Inquiries can be addressed to (0-555) 38-16-48, (0-773) 00-27-61.

===================L U X E M B O U R G===================

CRC BREEZE: S&P Downgrades Rating on EUR300 Mil. Bonds to 'BB'--------------------------------------------------------------Standard & Poor's Ratings Services said it lowered to 'BB' from'BB+' its long-term debt rating on the EUR300 million class Asecured bond due 2026 issued by CRC Breeze Finance S.A. The '2'recovery rating on this bond is not affected. The long-term 'CC'debt rating on the EUR50 million class B secured bond issued byBreeze Two and due 2016 is also unaffected. The outlook on theclass A and class B notes is negative.

"The downgrade of the class A notes reflects S&P's view that theoperational and financial performance of the Breeze Two portfolioconsistently underperforms compared with S&P's originalexpectations," said Standard & Poor's credit analyst Timon Binder.

S&P understands that Breeze Two has commissioned a new wind studyby independent experts to measure the actual performance of theportfolio. S&P assumes that this new wind study and the revenueprojections it derives will lead to significantly lower cash flowsand therefore lower senior debt service cover ratios (DSCR) thancurrently projected.

S&P expects to receive an updated financial model from Breeze Twoby year-end. However, based on the preliminary projections of themanagement and S&P's own estimates, S&P believes that the seniorDSCRs are not consistent with a 'BB+' rating.

Furthermore, management currently expects that it will have topartially use the A-note debt service reserve account in Novemberand that EUR2.48 million of the B-note payments will be deferred.According to the bond documentation, deferred B-note payments arerepaid before replenishment of the A-DSRA. Based on S&P'spreliminary revenue assumptions, S&P assume that theEUR13.3 million in the A-DSRA might not be fully funded for morethan 18 months, which will impair Breeze Two's liquiditysituation.

Breeze Two, a Luxembourg-based special-purpose vehicle, used theproceeds of its debt issues to make a loan to Breeze Two EnergyGmbH & Co. KG and Eoliennes Suroit SNC. Breeze Two Energy is aGerman limited partnership company, and Eoliennes Suroit is aFrench unlimited liability partnership. Each has been formed forthe purpose of acquiring, constructing, owning, and operating aportfolio of 39 wind farms with a nameplate capacity of 305megawatts in Germany (Breeze Two Energy) and 27 MW in France(Eoliennes Suroit).

The outlook is negative reflecting the uncertainty regarding theoperating and financial performance of the project over the nextmonths. "Following receipt of additional information on currentoperational issues, of the new expert wind study, and an updatedfinancial model from Breeze Two's management, S&P may lower therating by several notches," said Mr. Binder. "Furthermore, S&Pmay lower the rating if S&P don't have more visibility onoperating issues".

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CHEYNE CREDIT: Fitch Lowers Ratings on Two Tranches to 'BB'-----------------------------------------------------------Fitch Ratings has affirmed four tranches of Cheyne CreditOpportunity CDO 1 B.V.'s notes, downgraded two tranches, andremoved three tranches from Rating Watch Negative. The agency hasassigned Loss Severity ratings to all six tranches.

The rating actions reflect the recent clustering of leveraged loandefaults and increasing 'CCC'-rated asset exposure in theportfolio. To date, the transaction has suffered seven defaults.The cumulative default rate represents 13.1% of the target paramount of the transaction. In addition, 20.5% of the portfolionow consists of 'CCC+' or lower rated obligors. As a result ofnegative portfolio migration, all over-collateralization tests arenow breached. The credit enhancement of the class IV and class Vnotes are no longer deemed consistent with a 'BBB' and 'BB' ratingdefinitions respectively, which is why Fitch has downgraded thoseclasses to 'BB' and 'B' respectively. The performance of the twodowngraded tranches is highly dependent on portfolio recoveryprospects. Although some credit protection still remains for thedowngraded notes, Fitch's long term outlook remains negative.

The affirmations of the class I, II, and III notes reflect therobust CE driven by OC and excess spread. Fitch notes that thetransaction was initially assumed to have a portfolio consistingof 45% of second liens and mezzanine loans in aggregate, or up to20% of mezzanine loans (the maximum allowed levels according tothe transaction documentation). Due to higher initial lossexpectations, the initial CE was higher relative to other EuropeanCLOs which have stricter limits on second liens and mezzanineloans. The current portfolio contains 2% of mezzanine loans and15% of second lien loans which is noticeably lower than theallowed limits.

Fitch also notes that the transaction considers defaulted assetsat zero value rather than the market value or the agency'srecovery estimates for the purpose of calculating OC tests. Sincethe portfolio has started to deteriorate, collateral coveragetests have been breached. This is beneficial to the senior notesas the transaction continues to capture excess spread to redeemthe senior notes. At the last payment date in August 2009, 2.5%of the original notional of the class IA F note had been redeemedas the OC tests were breached. However, the more subordinatednotes are cut-off from cash flow and there is an increasinglikelihood that no interest payment will be made to the class IVand V tranches for an extended period of time.

DALRADIAN EUROPEAN: Moody's Junks Ratings on Two Classes of Notes-----------------------------------------------------------------Moody's Investors Service has taken these rating actions on notesissued by Dalradian European CLO II B.V. The Class A-1 and theVariable Funding Notes remain Aaa mainly due to the current overcollateralisation.

This transaction is a managed high yield collateralized loanobligation with exposure to predominantly European senior securedloans, as well as some mezzanine and second lien loan exposure.

The rating actions reflect Moody's revised assumptions withrespect to default probability and the calculation of thediversity score as described in the press release dated February4, 2009, titled "Moody's updates key assumptions for rating CLOs."These revised assumptions have been applied to all corporatecredits in the underlying portfolio, the revised assumptions forthe treatment of ratings on "Review for Possible Downgrade","Review for Possible Upgrade", or with a "Negative Outlook" beingapplied to those corporate credits that are publicly rated.

Moody's also notes that a material proportion of the collateralpool consists of debt obligations whose credit quality has beenassessed through Moody's credit estimates. As credit estimates donot carry credit indicators such as ratings reviews and outlooks,a stress of a quarter notch-equivalent assumed downgrade wasapplied to each of these estimates.

According to Moody's, the rating actions taken on the notes arealso a result of credit deterioration of the underlying portfolio.This is observed through a decline in the average credit rating asmeasured through the portfolio weighted average rating factor'WARF' (currently 2754), an increase in the amount of defaultedsecurities (currently 11% of the portfolio), an increase in theproportion of securities from issuers rated Caa1 and below(currently 10.8% of the portfolio), and a failure of all but thesenior par value tests. These measures were taken from the recenttrustee report dated July 31, 2009. Moody's also performed anumber of sensitivity analyses, including consideration of afurther decline in portfolio WARF quality. Due to the impact ofall the aforementioned stresses, key model inputs used by Moody'sin its analysis, such as par, weighted average rating factor, andweighted average recovery rate, may be different from trustee'sreported numbers.

In addition to the quantitative factors that are explicitlymodelled, qualitative factors are part of the rating committeeconsiderations. These qualitative factors include the structuralprotections in each transaction, the recent deal performance inthe current market environment, the legal environment, specificdocumentation features, the collateral manager's track record, andthe potential for selection bias in the portfolio. Allinformation available to rating committees, includingmacroeconomic forecasts, input from other Moody's analyticalgroups, market factors, and judgments regarding the nature andseverity of credit stress on the transactions, may influence thefinal rating decision.

ING GROEP: Commission Extends Probe Into Illiquid Back-up Facility------------------------------------------------------------------The European Commission has extended, under EC Treaty state aidrules, its investigation of the illiquid asset back-up facilityprovided by the Dutch State to the financial group ING. TheCommission has also extended its temporary clearance of themeasure until the assessment of the measure is finalized. TheCommission initially authorized the measure for six months forreasons of financial stability on March 31, while opening an in-depth investigation to analyse the complex measure in light of theCommission's Impaired Assets Communication. On the basis of theinformation provided so far, the Commission has doubts as to thecompatibility of the measure with the Impaired AssetsCommunication, in particular as regards valuation and burdensharing. This decision is without prejudice to the final outcomeof the investigation.

Competition Commissioner Neelie Kroes said: "The Commissionsupports Member States' efforts to stabilize financial markets bydealing with banks' impaired assets. However, state aid in theform of impaired asset relief has to be properly remunerated andshould not give undue advantages to banks. It is thereforeextending its investigation to explore further with the Dutchauthorities whether this is compatible with the Commission's stateaid rules on impaired asset relief. We look forward to continuingour constructive dialogue with the Dutch authorities and I amconfident that we will arrive at a satisfactory outcome."

ING is a Dutch-based financial institution offer ing banking,insurance and asset management services to over 85 million clientsin more than 40 countries. With a workforce of about 125,000people and a balance sheet of EUR1,332 billion at the end of 2008it is one of the biggest financial institutions in the world.

In January 2009, the Dutch State and ING implemented a so-calledilliquid assets back-up facility for a portfolio of US$39 billion(EUR30 billion) par value worth of US residential mortgage-backedsecurities , mostly backed by so-called Alt-A mortgage loans.

Under the transaction, the Dutch State buys the right to receivefuture cash flows on 80% of the above-mentioned portfolio, .

The Commission has assessed the measure under its guidanceCommunication on the treatment of asset relief measures. Takingaccount of input from external experts, the Commission considersthat the valuation seems at this stage not conservative enough.In addition, the Commission found that a significant proportion ofsecurities were valued above purchase price. Therefore, theCommission continues to have doubts that the price paid by theDutch Government, equivalent to a transfer price of 90% of theface value, is justified. Should the Dutch authorities not be ina position to address the Commission's concerns in a convincingmanner, the Commission's final decision on the compatibility ofthe facility with EU state aid rules would have to requireincreasing the remuneration of the Dutch State.

Background

The Impaired Asset Communication leaves the methods and design forimpaired asset relief measures to Member States, but definesimpaired asset relief as all measures whereby a bank is dispensedfrom the need for severe downward value adjustments and/or fromincreasing capital requirements triggered by severe ratingdowngrades.

The guidance document was designed to ensure that foreseeablelosses were disclosed and that impaired assets were valuedproperly with the help of an independent expert using anacceptable valuation methodology. The aim of the valuation is toestablish the real economic value of the illiquid assets, whichmay be significantly above the market value. The guidanceCommunication requires that measures designed to protect banksagainst illiquidity arising from impaired assets are accompaniedby adequate burden sharing and remuneration.

In March 2009, following an initial assessment of the complexmeasure for ING, the Commission decided for reasons of financialstability not to raise objections for a period of six months.However, as some conditions required by the Impaired AssetsCommunication needed further in-depth analysis, in particularregarding valuation, the Commission decided to open an in-depthinvestigation.

Headquartered in Amsterdam, the Netherlands, ING Groep N.V. --http://www.ing.com/-- is a global financial institution offering banking, investments, life insurance and retirement services. TheCompany serves more than 85 million private, corporate andinstitutional customers in Europe, North and Latin America, Asiaand Australia. ING has six business lines: Insurance Europe,Insurance Americas, Insurance Asia/Pacific, Wholesale Banking,Retail Banking and ING Direct. In July 2008, the Companycompleted the acquisition of CitiStreet LLC, a retirement plan andbenefit service and administration company in United States. InNovember 2008, ING Groep N.V. increased its stake in joint ventureBillington Holdings PLC from 50% to 100%. In February 2009, theCompany announced that it closed the sale of its Taiwanese lifeinsurance business to Fubon Financial Holding Co. Ltd. In April2009, the Company sold its non-state pension fund business and itsholding company in Russia to Aviva plc.

The rating actions reflect Fitch's updated view on the credit riskof the rated tranches following the release of its new ratingCriteria for European Granular Corporate Balance-SheetSecuritisations on July 23, 2009.

The transaction's performance has been stable. However, givenFitch's revised view of obligor and sector concentration, and ofthe current credit quality of the portfolio, the creditenhancement levels listed below are not sufficient to support thecurrent ratings of the tranches being placed on RWN.

If there are no significant changes to the transaction prior tothe resolution of the RWN, the tranches will likely be downgradedto the rating categories indicated below.

-- Class A due July 2043: 'AAA'; placed on RWN; CE 16.15% (could be downgraded to 'A')

Skyline 2007 B.V. is a special purpose vehicle incorporated underthe laws of the Netherlands. The issuer purchased a portfolio ofloans originated by FGH Bank N.V., a wholly-owned subsidiary ofRabobank Group (rated 'AA+'/'F1+'/Outlook Stable) for a totalamount of EUR3 billion at the outset.

The transaction is revolving until five years have elapsed sinceclosing (until 2012). The main replenishment criteria is based oninternal rating limits, single obligor concentration limits,maximum weighted-average life covenants, minimum debt servicecoverage ratio and interest coverage ratio levels, maximum loan-to-value ratio and regional and property type limits. The currentportfolio consists of 648 obligors which are secured by more than5,000 properties in the Netherlands.

Polski Koncern Miesny DUDA SA (PKM DUDA) -- http://www.zmduda.pl/-- is a Poland-based company active in the meat processingindustry. The Company focuses on the red meat production. Itsmain line of business is purchasing and slaughtering of pigs andcattle, as well as butchery services. Apart from sides of porkand quarters of beef, the range of products includes cuts of porkand beef, culinary meat, pluck and fats. As a complement to itsproduction and trading activities, the Company offers serviceswith regard to the freezing, storage and transport of foodstuffsthat require specialist refrigeration facilities. PKM DUDA is aparent company within a group comprising approximately 30companies in Poland, Ukraine and Germany.

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MONDEX SIBIU: High Rents in Malls Blamed for Insolvency-------------------------------------------------------Laurentiu Cotu at Ziarul Financiar reports that representatives ofRelco Active, the administrator of Mondex Sibiu, blamed the highrents paid for stores in mall-type commercial spaces or commercialgalleries in Romania for the company's insolvency.

According to ZF, with a 100-store network, the broadest inRomania, Mondex paid over EUR2 million to retail space ownersevery year. ZF notes against an EUR11-million turnover, rentsaccount for around 20% in Mondex' sales, almost 5% above whatconsultants say the optimal threshold for a store should be.

"We'll close 20-30 Mondex stores, where shopping gallery or mallowners will not cut rents, and we'll shift to other retail spaces.We'll give up the first Mondex stores in a matter of days. We'llfocus on Bucharest more as it's a solvent market and we'll boostexports," ZF quoted Relco Active representatives as saying.

ZF recalls Mondex shareholders filed for insolvency with the SibiuCourt of Law, as the company was in default, having accumulateddebts of around RON700,000 (over EUR166,000) since April untilnow, not including banking loans. Citing Finance Ministry data,ZF discloses Mondex had total debts of above RON54.5 million(around EUR13 million) in December 2008. In 2008, the firmreported turnover worth RON40.8 million (EUR11.6 million) andprofit of RON71,000 (EUR17,000).

ZF relates Relco Active representatives stated, "[f]rom talks heldwith special administrator Calin Bogdan Vircolacu, the companywill sell none of its assets". They also said they will draw up afinal list of receivables by January 2010 and plan to pay allaccumulated debts, ZF notes.

Mondex Sibiu is the largest hosiery manufacturer in Romania.

OLTCHIM SA: Debt-for-Equity Swap and State Guarantee Probed by EU-----------------------------------------------------------------The European Commission has opened a formal investigation under ECTreaty state aid rules into Romania's plans to grant a EUR135million debt-to-equity swap and a EUR339.2 million state guaranteefor chemical producer Oltchim. The Commission has doubts whetherthe planned measures are in line with the state aid rules and inparticular, whether a private operator would have accepted to makeavailable such measures. The opening of the in-depth inquirygives interested parties an opportunity to comment on themeasures. It does not prejudge the outcome of the procedure.

Competition Commissioner Neelie Kroes said: "The Commission mustverify whether the measures planned for Oltchim would entail stateaid, and if so whether such measures would not give rise toexcessive distortions of competition."

On July 17, 2009 Romania notified to the Commission two supportmeasures in favour of SA Oltchim Ramnicu Valcea, one of thelargest petrochemical companies in Romania and in South-EastEurope. The Romanian State is the majority shareholder in thecompany.

Under EU state aid rules, interventions by public authorities incompanies carrying out economic activities can be considered freeof aid if they are made on terms that a private player operatingunder market conditions would have accepted (the market economyinvestor principle).

The first measure involves a debt-to-equity swap of public debtamounting to around EUR135 million. The public debt stems fromthe triggering of state guarantees on non-performed commercialloans contracted before 2000. The Commission questioned whyRomania did not impose any interest on the public debt, inparticular since its EU accession on January 1, 2007, as Romaniashould have applied the EC Treaty in its entirety as of that date.

The second measure is a state guarantee amounting to EUR339.2million (covering 80% of a commercial loan of EUR424 million), tobe used for investments necessary for the implementation of thecompany's development plan. Romania considers that the plannedmeasures do not confer an advantage to the beneficiary, becausethe support given by the State to Oltchim in its quality of mainshareholder and main creditor respectively is comparable to what aprivate market operator would choose to do in similarcircumstances.

At this stage, given the long history of the debt, the currentsituation of the company and the magnitude of the further riskexposure of the state, the Commission doubts that a privateinvestor and a private creditor would have accepted to grant thetwo measures.

Oltchim SA -- http://www.oltchim.ro/-- is a Romania-based company, which is mainly active in the chemicals industry. It isdivided into five business units: chlor-alkali, petrochemical,chemical, technical and construction materials. Its product rangeencompasses inorganic products, such as caustic soda, chlorine,hydrochloric acid, hydrogen peroxide; macromolecular products,such as polyvinyl chloride, polyetherspolyols, and synthesisorganic products, including oxo alcohols, chlorinated products,phthalic anhydride and dioctyl phthalate. The Company alsoproduces pesticides, door and window frames, celluloid and thermo-isolating boards, as well as alimentary products, such asvegetables and fruits cans, beverages, eggs, forages, fodders,poultry and pork meat. Its subsidiaries include Oltchim MedicalProducts SRL, Oltchim GmbH, Sistemplast SA, Oltchim Italia andOltchim Fundatia. It distributes its products nationally andinternationally. As of December 31, 2008, A.V.A.S. holds a 53.26%stake in Oltchim SA.

According to Bloomberg, the newspaper said in July, En+ reached apreliminary agreement with banks to extend these loans until 2013and plans to sign final documents soon.

As reported in the Troubled Company Reporter-Europe on July 30,2009, Bloomberg News said En+ lenders include the Royal Bank ofScotland Group Plc., Deutsche Bank AG, Raiffersen ZentralbankOesterreich AG and Natixis.

Based in Moscow, En+ Group Ltd. -- http://www.enplus.ru/en/-- is an energy-related company. The company also holds power, coal-mining and oil businesses. It owns a controlling interest inUnited Company RUSAL.

Fitch has also downgraded and withdrawn Mastercroft Limited'sLong-term IDR from 'BB-' to 'B+' at RWN and affirmed and withdrawnMastercroft's Short-term IDR 'B'. This follows the repayment ofEvraz Securities SA's US$300 million 10.875% bonds which maturedon 3 August 2009. The bonds were guaranteed by Mastercroft.

The downgrade reflects Fitch's expectations of further significantnegative impact from the current global recession on Evraz'soperating performance and credit metrics in 2009 and 2010.Evraz's weak financial and operational performance in H109resulted in a consolidated EBITDAR margin of 10% (H108: 35%),which is below the agency's forecast of 15%. Evraz's performancein H109 was impacted by a 28% yoy reduction of sales volume andmore than 40% reduction of prices for semi-finished products andlong products, the company's key products in Russia. Delayedrestocking at key markets such as Europe and U.S., and highoperating costs in US and Europe resulted in an almost 0% EBITDARmargin at Evraz's international operations. This is compared toan EBITDAR margin of 18% for its CIS steel operations.

Fitch now does not expect that Evraz will be able to regain a"through-the-cycle" credit profile consistent with a 'BB' ratingcategory within 18-24 months of the trough of the currentrecession. Fitch notes that Evraz is mostly exposed to sales oflong products to the construction industry and exporting of semi-finished products. The agency expects a slow recovery in longproduct prices and volumes in H209 and 2010, reflecting the lackof new projects and difficult financial position of realestate/development companies. The downside of exporting semi-finished products is low margins, low sales stability due to spotselling and protectionist measures, and weakening demand from keyexport markets such as China due to increased stock piling.Therefore, despite capacity utilization rates having risen for thegroup's operations to more than 90% in Russia and 80% in the US,current and expected low prices for key products for the rest of2009 and 2010, and the company's limited ability to further reduceoperating costs will keep consolidated EBITDAR margin at lowlevels.

Under Fitch's updated scenario, which assumes a 5%-8% increase inrevenue in H209 in comparison to H109, a 10% increase in revenuein 2010 and unit costs remaining at Q209 levels, Fitch now expectsEvraz to report EBITDAR of around US$1.1 billion-1.3 billion in2009 (versus US$2.2bn in the previous Fitch forecast) and anEBITDAR margin of 11%-13% (20%), and EBITDAR of around US$2.1billion-2.3s billion in 2010 (US$3.1 billion-3.3 billion).

Due to the company's weak operational and financial performance,its gross and net leverage is expected to reach 6.2x-6.4x and5.8x-6x respectively. This will exceed the company's currentcovenanted level. The RWN continues to reflect uncertaintyregarding the outcome of negotiations with lenders in respect ofthe expected covenant breaches under its various facilities at thetesting date in Q110. If unresolved, this could also constitute across default under Evraz's other debt instruments.

As of end-H109, Evraz had gross debt of US$8.5 billion, cash ofUS$678 million and committed revolving facilities ofUS$563 million, plus the US$965 million proceeds of new equity andconvertible bond issues and free cash flow for the rest of 2009 ofUS$0.1 billion-0.3 billion (as forecasted by Fitch). The equityand convertible bond proceeds have mostly been used to repay overUS$900m of short-term debt, bringing the overall amount of debtcoming due in H209 and H110 to US$2.9 billion as at 1 September2009 (according to company estimates). Out of this, the companyexpects to extend and refinance US$2bn decreasing the netrepayment in H209 to US$900 million. Fitch is concerned aboutEvraz's liquidity in 2010 as its debt maturities (approximately30% of total debt) peak in that year. With Evraz's free cash flowin 2010 expected to be US$1 billion-1.2 billion, liquidity isheavily dependent on the company's ability to roll-over maturingdebt and attract new financing to meet its debt obligations.

Fitch expects to resolve the RWN within the next six months.

LUZSKIY FORESTRY: Creditors Must File Claims by September 19------------------------------------------------------------Creditors of LLC Luzskiy Forestry (TIN 5077022260, PSRN1085077000865) have until September 19, 2009, to submit proofs ofclaims to:

A. Galin Insolvency Manager Post User Box 14 165300 Kotlas Russia

The Arbitration Court of Moskovskaya commenced bankruptcyproceedings against the company after finding it insolvent. Thecase is docketed under Case No. ?41–27438/08.

The rating action was prompted by the prolonged deterioration andworse-than-expected performance of the collateral backing thenotes. The downgrades also reflect Moody's negative sectoroutlook for Spanish RMBS and the weakening of the macro-economicenvironment in Spain, including the expected increase inunemployment rates projected for 2009 and 2010.

Madrid RMSB I, II, and III closed in November 2006, December 2006and July 2007 respectively. The transactions are backed byportfolios of first-ranking mortgage loans originated by CajaMadrid (A1/P-1) and secured on residential properties located inSpain. Pool balances at closing were EUR2 billion, EUR1.8 billionand EUR3.0 billion in Madrid RMBS I, II and III respectively. Atclosing the collateral consisted of loans with loan-to-valueratios over 80%. These high LTV loans represent over 94% of theoutstanding pool balance in all three transactions as of June2009. The pools are concentrated in the region of Madrid,representing 70%, 67% and 56% of current pool balance in MadridRMBS I, II, and III respectively. A significant share of thesecuritized mortgage loans has been originated via regulatedbrokers, representing about 50% of current pool balance in allthree transactions at the end of June 2009. Currently, between37% and 40% of the portfolio balance in the three Madrid RMBStransactions corresponds to loans granted to non-Spanishnationals. Concentrations of loans originated via regulatedbrokers and loans granted to non-Spanish nationals are among therisk characteristics that result in higher credit enhancementrequirement for a given rating under Moody's updated methodologyfor rating Spanish RMBS.

Moody's had already taken action on the three deals in November2008. The asset performance has continued to deteriorate so muchthat the transactions are currently performing outside of Moody'srevised expectations as of the latest review. Moody's observedthat cumulative write-offs (loans either being declared asdefaulted by the originator or being overdue for more than 6months) have increased between two to five times since Moody'slast rating review, when cumulative write-offs stood at 3.19%,4.64% and 2.98% in Madrid RMBS I, II and III respectively (data asof end of September 2008). The cumulative write-offs arecurrently equal to 11.4%, 13.3% and 13.2% of the originalportfolio balance in Madrid RMBS I, II and III respectively (dataas of end of July 2009). The 90+ delinquencies (excludingoutstanding write-offs) correspond to approximately 4.15%, 4.33%and 4.67% of the current portfolio balance in Madrid I, II and IIIrespectively.

Moody's performed a loan-by-loan analysis of all delinquent andwritten-off loans in the three Madrid RMBS. This analysishighlighted that loans originated to non-Spanish borrowers have asignificantly greater write-off rate than loans originated toSpanish nationals. In Madrid II and III, the write-off rate forloans granted to non-Spanish national (calculated as the written-off loan amount divided by original pool balance of loansoriginated to non-Spanish borrowers) is between 6 to 7 times thewrite-off rates of loans granted to Spaniards. Coincidently,loans originated via regulated brokers are experiencingsignificantly higher write-offs than loans originated by CajaMadrid's branches. The write-off rate of broker originated loansis about 3 times higher that the write-off rate of mortgage loansoriginated by Caja Madrid. This analysis also highlighted thatloans in negative equity (i.e. loan where the outstanding debt isexceeding the indexed property value according to Moody'sestimations) show a write-off rate between 1.5-2 times higher thanthe write-off rate of loans which are not in negative equity. InMadrid RMBS I, about 18% of the mortgage pool is currently innegative equity, compared to 15% in Madrid RMBS II and 30% inMadrid RMBS III.

The rapidly increasing levels of delinquent and written-off loanshave resulted in the full depletion of the reserve funds andbuild-up in unpaid Principal Deficiencies Ledgers in all threeMadrid RMBS transactions. According to the latest investor cashflow statements released in late August, unpaid PDLs currentlystand at EUR43.1 million, EUR52.1 million and EUR145.2 million.Unpaid PDLs currently exceed the size of the Class E notes inMadrid I, and the Class E and D in Madrid RMBS II and III.Moody's anticipates that the weakening of the economic conditionswill continue to cause high arrears and write-offs. Availablefunds in both transactions will ultimately increase as recoveriesfrom written-off loans are collected. However, the pace at whichloans are moving from arrears into write-offs suggests thatcurrent unpaid PDLs will not be completely cured. Theamortization of the mezzanine and junior notes is likely to remainsequential as a consequence of the breach of pro-rata amortizationtriggers. Additionally, the increase in the volume of loans beingwritten-off has resulted in the breach of the interest deferraltriggers in Madrid RMBS II and Madrid RMBS III. Interest deferraltriggers on junior notes in Madrid RMBS I have not been breachedat this stage. Interest payments on the Class E in Madrid RMBS IIand Class E and D in Madrid RMBS III were diverted to pay downsenior notes as of the last interest payment date.

Moody's has revised its loss expectation for Madrid RMBS I, II andIII to reflect the collateral performance to date as well asMoody's negative outlook for the Spanish housing market, in thecontext of a weakening macro-economic environment. Following anupdated loan-by-loan analysis, and on the basis of the performanceexperienced by the portfolio so far, Moody's has updated theportfolio's expected loss assumption from a range of 2.4%-3.0% to7% of original balance in Madrid RMBS I and II and 8% of originalbalance in Madrid RMBS III. Moody's has also assessed loan-by-loan information for the outstanding portfolios to determine thecredit support consistent with target rating levels and thevolatility of the distribution of future losses. As a result,Moody's has revised its MILAN Aaa credit enhancement (MILAN AaaCE) assumptions to 22% for all three Madrid RMBS transactions.The loss expectation and the Milan Aaa CE are the two keyparameters used by Moody's to calibrate its loss distributioncurve, which is one of the core inputs in the cash-flow model ituses to rate RMBS transactions. The current available creditenhancement for the Aaa classes (including subordination andreserve fund and taking into consideration the amount of unpaidPDLs) is equal to 12.1%, 11.2% and 6.0% in, respectively MadridRMBS I, II, and III as at the latest investor cash flow statementsreleased in August.

In Madrid RMBS II and III, Class A2 and A3 amortize sequentially.However, sequential amortization reverts to pro-rata if theoutstanding amount of loans more than six months in arrearsexceeds 25% of the original notes balance. The ratio of written-off loan balance to the original notes balance is currently at7.9% and 9.4% in Madrid RMBS II and Madrid RMBS III respectively.Moody's considers the risk of breaching this trigger in MadridRMBS III to be no longer commensurate with a Aaa rating. Giventhe higher seasoning and relatively better credit performance ofMadrid RMBS II collateral, Moody's expects Class A2 to be repaidin priority to Class A3 in most of the default scenarios, andtherefore maintains Aaa rating for the Class A2.

Moody's ratings address the expected loss posed to investors bythe legal final maturity of the notes. Moody's ratings addressonly the credit risks associated with the transaction. Otherrisks have not been addressed, but may have a significant effecton yield to investors.

S&P's credit analysis, based on the most recent transactioninformation S&P has received, showed a continuous deterioration ofthe performance of the underlying collateral. This has increasedthe likelihood of negative rating actions on the affected classes.

In particular, if gross cumulative defaults reach a trigger levelwhereby interest might be deferred (set as a percentage of theinitial pool balance), the interest on the subordinated classes ofnotes will be paid only after amortization of the senior classes.As of the end of July, gross cumulative defaults as a percentageof the initial pool balance were 1.99%. This level has increasedsignificantly over the past few interest payment dates. At theend of 2008, gross cumulative defaults represented 0.74% of theinitial collateral balance.

The deferral of interest triggers on classes B, C, D, and E areset at gross cumulative default levels of 11.40%, 8.60%, 5.50%,and 4.20%, respectively. S&P observe that the current level of90+ day delinquencies, plus gross cumulative defaults as apercentage of the initial collateral balance, is 5.53%.

S&P has consequently placed its ratings on these classes onCreditWatch negative, while S&P assesses any increased likelihoodof these levels being breached. In addition, S&P notes that thereserve fund has nearly depleted due to defaults and low levels ofavailable excess spread. After the June IPD, the reserve fund hadreduced to only 0.16% of the outstanding collateral balance. S&Pbelieves that a large proportion of severe delinquencies maydefault, causing further draws. Available credit enhancement maythen become insufficient to maintain the current ratings.

While S&P has seen limited recoveries to date, due to the lengthof the foreclosure period in the Spanish jurisdiction, S&Pbelieves that the risk of interest deferrals will drive anyratings movements on subordinated classes of notes over the nearto medium term.

The originators of this transaction are four Spanish financialentities: Caixa d'Estalvis de Terrassa, Caja General de Ahorros deGranada, Caja Vital Kutxa, and Union de Credito para laFinanciacion Mobiliaria e Inmobiliaria, Credifimo, E.F.C., S.A.U.(Credifimo). The loans were mainly originated in Andalucia,Catalonia, and Madrid.

GENERAL MOTORS: Saab Seeks Deal on Chinese Sales Networks---------------------------------------------------------Cornelius Rahn at Bloomberg News reports that Saab Automobile, thecarmaker being sold by General Motors Co., aims to reach anagreement with Beijing Automotive Industry Holding Co. on salesnetworks in China within weeks.

According to Bloomberg, Christian von Koenigsegg, founder ofKoenigsegg Automotive AB, which is leading a group of investors ina takeover of Trollhaettan-based Saab, said he doesn't expect GMto impose restrictions on Saab's sales in China similar to thosefacing GM's Opel unit.

Bloomberg relates Mr. von Koenigsegg said Tuesday in an interviewat the Frankfurt Motor Show GM is "open to the idea to make itwork" for Saab. "We are in the process of finding an agreementwithin the next few weeks," Bloomberg quoted Mr. von Koenigsegg assaying.

Bloomberg recalls Koenigsegg Group said last week Saab plans touse Beijing Automotive's sales network to sell its sedans andstation wagons, and will share technology with the Chinesemanufacturer.

Saab Chief Executive Officer Jan-Aake Jonsson, as cited byBloomberg, said at a news conference in Frankfurt Tuesday"Beijing Automotive is an opportunity for us to establishourselves in the Chinese market with their experience."

On Sept. 10, 2009, the Troubled Company Reporter-Europe, citingBloomberg News, reported Beijing Automotive joined KoenigseggGroup's offer to buy Saab from GM. Bloomberg disclosed KoenigseggGroup said in a statement Beijing Automotive will take a minoritystake in the team bidding for Saab and help the unprofitable GMdivision find opportunities to expand in China.

Citing Saab Chief Executive Officer Jan-Aake Jonsson, Bloombergnotes the bidding team of Koenigsegg and investor Augie Fabela IIfor the Swedish manufacturer, and GM are working through the"final pieces" of a transaction, and the purchase should becompleted by Oct. 31.

Creditor Protection

The Troubled Company Reporter Europe, citing Bloomberg News,reported on Feb. 23, 2009, Saab filed for protection fromcreditors after parent GM said it will cut ties with the Swedishcarmaker following two decades of losses. The Trollhaettan,Sweden-based company filed for reorganization with a Swedishdistrict court to separate itself from GM and bring resources backto Sweden.

On June 25, 2009, Troubled Company Reporter, citing The WallStreet Journal, reported creditors of Saab approved theautomakers' proposal for settling its debts by paying a quarter ofwhat it originally owed. Saab proposed to settle its debts bypaying 25% of about US$1.34 billion it owed to more than 600creditors, including auto suppliers and the Swedish government.The vast majority of the debt, almost SEK10 billion, was owed toGM.

About Saab Automobile

Saab Automobile AB -- http://www.saab.com/-- is a wholly owned subsidiary of General Motors. With an annual production of up to126,000 cars, Saab's current models include the 9-3 (available asa convertible or sport sedan), the luxury 9-5 sedan (alsoavailable in a sport wagon), and the seven-passenger 9-7X SUV.

About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufacturescars and trucks in 35 countries. In 2007, nearly 9.37 million GMcars and trucks were sold globally under the following brands:Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStarsubsidiary is the industry leader in vehicle safety, security andinformation services.

GM Europe is based in Zurich, Switzerland, while General MotorsLatin America, Africa and Middle East is headquartered in Miramar,Florida.

As reported by the Troubled Company Reporter, GM reported net lossof US$6.0 billion, including special items, in the first quarterof 2009. This compares with a reported net loss of US$3.3 billionin the year-ago quarter. As of March 31, 2009, GM hadUS$82.2 billion in total assets and US$172.8 billion in totalliabilities, resulting in US$90.5 billion in stockholders'deficit.

General Motors Corporation and three of its affiliates filed forChapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead CaseNo. 09-50026). General Motors changed its name to MotorsLiquidation Co. following the sale of its key assets to a company60.8% owned by the U.S. Government.

Bankruptcy Creditors' Service, Inc., publishes General MotorsBankruptcy News. The newsletter tracks the Chapter 11 proceedingundertaken by General Motors Corp. and its various affiliates.(http://bankrupt.com/newsstand/or 215/945-7000)

SAAB AUTOMOBILE: Seeks Deal on Chinese Sales Networks Within Weeks------------------------------------------------------------------Cornelius Rahn at Bloomberg News reports that Saab Automobile, thecarmaker being sold by General Motors Co., aims to reach anagreement with Beijing Automotive Industry Holding Co. on salesnetworks in China within weeks.

According to Bloomberg, Christian von Koenigsegg, founder ofKoenigsegg Automotive AB, which is leading a group of investors ina takeover of Trollhaettan-based Saab, said he doesn't expect GMto impose restrictions on Saab's sales in China similar to thosefacing GM's Opel unit.

Bloomberg relates Mr. von Koenigsegg said Tuesday in an interviewat the Frankfurt Motor Show GM is "open to the idea to make itwork" for Saab. "We are in the process of finding an agreementwithin the next few weeks," Bloomberg quoted Mr. von Koenigsegg assaying.

Bloomber recalls Koenigsegg Group said last week Saab plans to useBeijing Automotive's sales network to sell its sedans and stationwagons, and will share technology with the Chinese manufacturer.

Saab Chief Executive Officer Jan-Aake Jonsson, as cited byBloomberg, said at a news conference in Frankfurt Tuesday"Beijing Automotive is an opportunity for us to establishourselves in the Chinese market with their experience."

On Sept. 10, 2009, the Troubled Company Reporter-Europe, citingBloomberg News, reported Beijing Automotive joined KoenigseggGroup's offer to buy Saab from GM. Bloomberg disclosed KoenigseggGroup said in a statement Beijing Automotive will take a minoritystake in the team bidding for Saab and help the unprofitable GMdivision find opportunities to expand in China.

Citing Saab Chief Executive Officer Jan-Aake Jonsson, Bloombergnotes the bidding team of Koenigsegg and investor Augie Fabela IIfor the Swedish manufacturer, and GM are working through the"final pieces" of a transaction, and the purchase should becompleted by Oct. 31.

Creditor Protection

The Troubled Company Reporter Europe, citing Bloomberg News,reported on Feb. 23, 2009, Saab filed for protection fromcreditors after parent GM said it will cut ties with the Swedishcarmaker following two decades of losses. The Trollhaettan,Sweden-based company filed for reorganization with a Swedishdistrict court to separate itself from GM and bring resources backto Sweden.

On June 25, 2009, Troubled Company Reporter, citing The WallStreet Journal, reported creditors of Saab approved theautomakers' proposal for settling its debts by paying a quarter ofwhat it originally owed. Saab proposed to settle its debts bypaying 25% of about US$1.34 billion it owed to more than 600creditors, including auto suppliers and the Swedish government.The vast majority of the debt, almost SEK10 billion, was owed toGM.

About General Motors

Headquartered in Detroit, Michigan, General Motors Corp.(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufacturescars and trucks in 35 countries. In 2007, nearly 9.37 million GMcars and trucks were sold globally under the following brands:Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStarsubsidiary is the industry leader in vehicle safety, security andinformation services.

GM Europe is based in Zurich, Switzerland, while General MotorsLatin America, Africa and Middle East is headquartered in Miramar,Florida.

As reported by the Troubled Company Reporter, GM reported net lossof US$6.0 billion, including special items, in the first quarterof 2009. This compares with a reported net loss of US$3.3 billionin the year-ago quarter. As of March 31, 2009, GM hadUS$82.2 billion in total assets and US$172.8 billion in totalliabilities, resulting in US$90.5 billion in stockholders'deficit.

General Motors Corporation and three of its affiliates filed forChapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead CaseNo. 09-50026). General Motors changed its name to MotorsLiquidation Co. following the sale of its key assets to a company60.8% owned by the U.S. Government.

Bankruptcy Creditors' Service, Inc., publishes General MotorsBankruptcy News. The newsletter tracks the Chapter 11 proceedingundertaken by General Motors Corp. and its various affiliates.(http://bankrupt.com/newsstand/or 215/945-7000)

About Saab Automobile

Saab Automobile AB -- http://www.saab.com-- is a wholly owned subsidiary of General Motors. With an annual production of up to126,000 cars, Saab's current models include the 9-3 (available asa convertible or sport sedan), the luxury 9-5 sedan (alsoavailable in a sport wagon), and the seven-passenger 9-7X SUV.

The level of credit enhancement available to all classes of noteshas increased because of class A amortization and the increasedbalance of the dynamic cash reserve. The credit support hasincreased to 48.0%, 37.0%, 32.2%, and 6.8% for classes A, B, C,and D from 34.5%, 26.5%, 23.0%, and 4.5% at closing, respectively.During the revolving period, the class A and E notes are subjectto targeted amortization, using principal and interest receiptsfrom the loans to repay class A and E, respectively.

The class E notes are backed by excess spread only. The cashreserve was funded at closing from the class E note issuanceproceeds, and is replenished through interest collections. Thepurpose of the cash reserve is to cover both interest shortfallsand principal losses arising in the transaction. The reserve fundbalance depends on the interest on the loans in the portfolio andthe amount of the portfolio that is in arrears, subject to a floorof 4.5% (EUR7.55 million) of the initial balance of the ratednotes excluding (class E). The balance of this reserve is nowEUR8.30 million.

There are some trigger metrics in place that stop the revolvingperiod and start the sequential amortization of the notes, whenbreached. The revolving period can resume once the breach iscured. One of these triggers is the three-month rolling averageof the annualized net default rate being higher than 2.5%. Thistrigger has been breached three times during the last five months.The rate of loans delinquent by more than one and less than sixmonths, on the other hand, has so far been consistently below the5.0% trigger level, having been equal to 1.0% on average sinceclosing. All the loans that are delinquent by more than fivemonths are written off. All the losses have so far been curedusing excess spread. The level of annualized excess spreadavailable after curing the losses has been equal to around 7.0% onaverage since closing.

Given the performance of the collateral to date and the level ofcredit support available to the notes, S&P affirm its ratings onthe notes.

This EUR175.7 million transaction, which closed in July 2006, isbacked by a pool of Scandinavian unsecured personal loansoriginated by Nordax Finans AB. The structure features a five-year revolving period, during which the originator can sell newloans to the issuer. The issuer then adds these to the collateralportfolio. The revolving period ends in June 2011.

AGROPESCO AG: Claims Filing Deadline is September 21----------------------------------------------------Creditors of Agropesco AG are requested to file their proofs ofclaim by September 21, 2009, to:

Thomas Mayer Liquidator Marktplatz 4 9004 St. Gallen Switzerland

The company is currently undergoing liquidation in St. Gallen.The decision about liquidation was accepted at an extraordinarygeneral meeting held on June 29, 2009.

DATALEX GMBH: Claims Filing Deadline is September 21----------------------------------------------------Creditors of Datalex GmbH are requested to file their proofs ofclaim by September 21, 2009, to:

Dr. Alexander Frei Gumprechtsstrasse 42 6376 Emmetten Switzerland

The company is currently undergoing liquidation in Stansstad NW.The decision about liquidation was accepted at an extraordinaryshareholders' meeting held on June 19, 2009.

EN ENERGIE: Claims Filing Deadline is September 21--------------------------------------------------Creditors of EN Energie AG are requested to file their proofs ofclaim by September 21, 2009, to:

Roland Haesler Hauptstrasse 135 4313 Moehlin Switzerland

The company is currently undergoing liquidation in Frenkendorf.The decision about liquidation was accepted at an extraordinarygeneral meeting held on June 19, 2009.

GLANZMANN HEIZTECHNIK: Claims Filing Deadline is September 21-------------------------------------------------------------Creditors of Glanzmann Heiztechnik AG are requested to file theirproofs of claim by September 21, 2009, to:

Roland Haesler Hauptstrasse 135 4313 Moehlin Switzerland

The company is currently undergoing liquidation in Basel. Thedecision about liquidation was accepted at an extraordinarygeneral meeting held on June 19, 2009.

HANDYCENTER AARAU: Claims Filing Deadline is September 21---------------------------------------------------------Creditors of Handycenter Aarau GmbH are requested to file theirproofs of claim by September 21, 2009, to:

The company is currently undergoing liquidation in Solothurn. Thedecision about liquidation was accepted at a general meeting heldon May 13, 2009.

MOLETHERM POOL: Claims Filing Deadline is September 21------------------------------------------------------Creditors of Moletherm Pool AG are requested to file their proofsof claim by September 21, 2009, to:

GILEYA LLC: Creditors Must File Claims by September 20------------------------------------------------------Creditors of LLC Production and Trading Firm Gileya (code EDRPOU31638454) have until September 20, 2009, to submit proofs of claimto:

INTERTECHBUD LLC: Creditors Must File Claims by September 20------------------------------------------------------------Creditors of LLC Building Company Intertechbud (code EDRPOU35223732) have until September 20, 2009, to submit proofs of claimto:

NAFTOGAZ NJSC: Begins Debt Restructuring Talks----------------------------------------------Halia Pavliva at Bloomberg News reports that NJSC Naftogaz ofUkraine is to begin talks with creditors aimed at restructuringdebt including US$500 million of Eurobonds due this month.

Bloomberg relates Naftogaz said in an e-mailed statement Mondaythe company will hold negotiations this week with bilateralcreditors and work on a restructuring proposal.

According to Bloomberg, citing "sources familiar" with thediscussions, Kaan Nazli, director of New York-based Medley GlobalAdvisors LCC wrote in a note to clients the company may offer topay annual interest of 9.5% on extended-maturity debt, comparedwith 8.125% on Loan Participation Notes due Sept. 30.

About NJSC Naftogaz of Ukraine

Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine (alsoknown as NAK Naftogaz Ukrainy) -- http://www.naftogaz.com/-- is a vertically integrated oil and gas company engaged in full cycle ofoperations in gas and oil field exploration and development,production and exploratory drilling, gas and oil transport andstorage, supply of natural gas and LPG to consumers.

* * *

As reported in the Troubled Company Reporter-Europe on Aug. 11,2009, Moody's Investors Service downgraded to Caa2 from Caa1 theforeign currency corporate family rating, and probability ofdefault and debt ratings of NJSC Naftogaz of Ukraine while alsoplacing the ratings on review for possible downgrade.

The rating action reflects Moody's concerns that recent statementsby government representatives that Naftogaz has been directed toenter into debt renegotiations with foreign creditors shortlybefore the scheduled maturity of the company's US$500 millionnotes on September 30 suggests that the probability ofextraordinary government support to prevent a default should nowbe classified in the low rather than medium category.

UNEX BANK: S&P Affirms 'CCC+' Counterparty Credit Ratings---------------------------------------------------------Standard & Poor's Ratings Services said that it had affirmed its'CCC+' long-term and 'C' short-term counterparty credit ratingsand its 'uaB' Ukraine national scale rating on Ukraine-based UNEXBANK. The ratings were subsequently withdrawn at the bank'srequest. The outlook at the time of the withdrawal was negative.

JOHN MCGAVIGAN: In Administration; KPMG Appointed-------------------------------------------------Blair Nimmo and Tony Friar of KPMG Restructuring were appointed asJoint Administrators of John McGavigan Limited on September 14,2009, at the request of the Company's directors.

McGavigan, which has a turnover of approximately GBP9 million,manufactures, assembles and supplies decorative panels (such asdashboards, speedometers and temperature gauges) and otherinterior design products for the automotive sector. McGavigan wasincorporated in 1922 and has a long trading history and wellestablished name in its sector. Its headquarters andmanufacturing facility are located in Bishopbriggs, Glasgow.McGavigan employs 135 people.

McGavigan has been affected by the overall declining demand in theautomotive industry where volumes have reduced substantially inrecent times.

McGavigan, which is part of the US based Advanced DecorativeSystems Inc group, explored several opportunities to restructure,sell or refinance the business, but these were not successful.

The Administrators are allowing the business to continue to tradewhilst marketing the business and assets for sale as a goingconcern. In the meantime, it has proven necessary to streamlinethe cost base to reflect current trading levels. Accordingly, itis with regret that 11 redundancies have been implementedimmediately following the appointment.

Blair Nimmo, Joint Administrator and Head of Restructuring forKPMG in Scotland said: "McGavigan is a well established Companyand a key supplier to many Tier 1 manufacturers in the automotivesector. We hope to continue working with the Company's suppliers,customers and its experienced workforce while a sale of thebusiness is pursued. Any interested parties should contact theJoint Administrators as soon as possible."

The downgrades are due to the recent decline in U.K. house pricesand S&P's expectation of higher average losses for loans onproperties that are repossessed.

S&P has seen higher loss severities in most U.K. RMBStransactions. While repossessions have fallen to 2.13% from 2.47%in April 2009, the average loss severity is high at 35.05%.

Furthermore, cumulative principal losses currently represent 0.35%of the original collateral balance. According to the July 2009investor report, the reserve fund was drawn on again and is now at29% of the required amount.

S&P understands that the Bank of England base rate (BBR) reductionto 0.5% has lowered borrowers' monthly payments, which hasincreased collection rates in this transaction. However, S&Pexpects further reserve fund draws as repossessed properties aresold and further losses are realized.

Across the U.K. RMBS market, S&P has witnessed an increase inbasis risk. However, unlike Ludgate 2006-FF1, the Ludgate 2007-FF1 transaction includes a basis swap to hedge against differencesbetween the BBR received from the floating-rate loans and theLIBOR due on the notes.

Ludgate 2007-FF1 is a U.K. residential mortgage-backed securitiestransaction. At closing, approximately 53.5% of the pool was buy-to-let loans.

NATIONAL BANK: Fitch Downgrades Individual Rating to 'D'--------------------------------------------------------Fitch Ratings has affirmed London-based National Bank of EgyptUK's Long-term Issuer Default Rating at 'BB+' with a StableOutlook. The agency has affirmed the bank's Short-term IDR of 'B'and Support Rating of '3'. At the same time, Fitch has downgradedNBE UK's Individual Rating to 'D' from 'C/D'.

NBE UK's IDRs and Support Rating reflect the moderate probabilityof support that would flow to the bank, ultimately from theEgyptian authorities, via its 100% owner, National Bank of Egypt(NBE, rated 'BB+'/Stable Outlook), and are aligned with those ofNBE and Egypt's sovereign rating ('BB+'/Stable Outlook).

The downgrade of NBE UK's Individual Rating reflects the increasein the level of the bank's impairments during FY09, which areexpected to result in a net loss for the period. Impaired assetsinclude loans, floating rate notes and interbank placements. Thebulk of the impaired exposure is to Icelandic banks, but alsoincludes exposure to financial institutions based in othermarkets.

Following the global financial crisis and economic slowdown, NBEUK has revised its strategy. Management's primary focus is onimproving the credit quality of its assets and maintaining goodliquidity. Cash flows from maturing assets are being invested in'AAA'-rated government securities or government guaranteedinstruments. As a result, the credit quality of NBE UK's assetshas improved, with 80% of the balance sheet rated investment gradeat end-August 2009 (end-June 2008: 72%). Nevertheless, somefurther deterioration of asset quality could occur.

NBE UK has maintained high liquidity, which is reflected in thelarge proportion of interbank assets and of marketable securitieson its balance sheet. At end-June 2009, the bank remainedadequately capitalized.

NBE UK's main areas of activity are in the wholesale money marketbusiness and the provision of trade finance facilities, primarilyto Egyptian banks.

NOVAE INSURANCE: Fitch Gives Negative Outlook; Holds 'BB+' Rating-----------------------------------------------------------------Fitch Ratings has changed the Outlook on UK-based Novae InsuranceCompany Limited to Negative from Stable. Its Insurer FinancialStrength rating is affirmed at 'A-'. At the same time the agencyhas revised the Outlook on Novae Group plc's Long-term IssuerDefault Rating to Negative from Stable. Novae's Long-term IDR isaffirmed at 'BBB' and the GBP100 million subordinated notes at'BB+'. NICL is an FSA-regulated UK insurance company and a whollyowned subsidiary of Novae.

The Outlook revision reflects Novae's recent poor operatingperformance and Fitch's expectation that near-term earnings willcontinue to be weak. The agency believes that downside earningsrisk exists from a higher than average level of claims activityacross certain business lines, and from the prospect of reducedinvestment income, an element that has formed a prominent part ofpast profitability. The rating affirmation reflects Novae'sstrong capital position, prudent investment strategy and robustliquidity position. Fitch notes that the risk of adverse reservedevelopment from US liability lines, which significantly impairedhistorical operating performance, appears to have subsided. Fitchcontinues to view Novae's ability to demonstrate stability in itsreserving as a key rating driver.

Novae achieved solid gross written premium growth to GBP349million at FYE08, a y-o-y increase of 4.8%, while reporting a13.5% rise in net income to GBP37.1 million (GBP24.2 millionexcluding non-monetary foreign exchange). However, softer pricingand an increase in claims activity impacted the technical result,reflected in a worsened combined ratio of 105.8% (2007: 99.1%).Results for H109 exhibited further weakness where, despite GWPincreasing 18.4% to GBP220.3 million, Novae reported a net loss ofGBP10.5 million (H108: profit of GBP15.4 million) which included aGBP16.4 million negative impact from non-monetary foreignexchange, with aviation and credit losses resulting in thecombined ratio deteriorating to 112.2% (H108: 98.7%), although theagency notes that it would have been 90.4% excluding these twolines. While the aviation losses suffered in H109 are mostprobably exceptional, the impact of recessionary conditions onother lines, notably UK credit, remains a concern.

Fitch maintains a favorable view of Novae's prudent investmentapproach and notes the positive results generated by the insurer'sinvestments, which returned GBP50 million or 5.1% in 2008 (2007:GBP46.8 million or 5.2%). The agency notes the high percentage ofthe insurer's recent operating earnings that have been generatedby investment income and believes that sustaining such returns inthe near-term is unlikely (H109 investment income wasGBP10.9 million representing an annualized return of 2.02%),placing further downward pressure on earnings. Novae is seekingto improve investment returns, predominantly through increasingexposure to corporate bonds. Fitch remains cautious as to howsuccessful the revised investment approach will prove to be,recognizing the increased risk inherent in this asset class, butviews positively the maintenance of an investment graderequirement for all invested assets, which should help to reducedefault risk within the portfolio.

Novae's capital position is considered to be strong and providesconsiderable support to the current ratings. However, thecontinued growth of Novae's premium base and the formation ofNovae Re are expected to place some pressure on the insurer'scapital strength. The group continues to manage its capital baseclosely, completing the early repurchase of GBP30 million (nominalvalue) of subordinated notes in May 2009. Fitch believes thatNovae has no current requirement to raise additional externalfunds and notes that the additional capital required to establishNovae Re will be funded by a letter of credit and internalsources.

SPOT ON COMPUTERS: Creditors to Meet Today, Sept. 17----------------------------------------------------Sam Trendall at CRN reports that a meeting of Spot on Computers'creditors will take place today, Sept. 17, at the office ofinsolvency specialist Mistry Associates.

CRN recalls the Mancunian firm was incorporated in 1996 and, bythe turn of the century, was posting annual revenues of more thanGBP10 million. Citing an industry source, CRN discloses the firmwas not adaptive enough with its business model in later years.

IATA also revised its loss estimates for 2008 from a loss ofUS$10.4 billion to a loss of US$16.8 billion. This revisionreflects restatements and clarification of the accountingtreatment of very large revaluations to goodwill and fuel hedges.IATA industry profit figures strip-out such extra-ordinary itemswhich are not realized in cash terms.

"The bottom line of this crisis -- with combined 2008-9 losses atUS$27.8 billion -- is larger than the impact of 9/11," saidGiovanni Bisignani, IATA's Director General and CEO. Industrylosses for 2001-2002 were US$24.3 billion. "This is not a short-term shock. US$80 billion will disappear from the industry's topline. That 15% of lost revenue will take years to recover.Conserving cash, careful capacity management and cutting costs arethe keys to survival. The global economic storm may be abating,but airlines have not yet found safe harbor. The crisiscontinues," said Mr. Bisignani.

Three main factors are driving the expected losses:

* Demand: Passenger traffic is expected to decline by 4.0% and cargo by 14% for 2009 (compared to declines of 8.0% and 17% respectively in the June forecast). By July, cargo demand was -11.3% and passenger demand was -2.9%. While both are improvements over the lows of -23.2% for cargo (January) and -11.1% for passenger (March), both markets remain weak.

* Yield: Yields are expected to fall 12% for passenger and 15% for cargo, compared to declines of 7% and 11% respectively in the June forecast. The fall in passenger yield is led by the 20% drop in demand for premium travel. Cargo utilization remains at less than 50% despite the removal of 227 freighters from the global fleet. There is little hope for an early recovery in yields in either the passenger or cargo markets.

* Fuel: Spot oil prices have been driven up sharply in anticipation of improved economic conditions. Oil is now expected to average US$61 per barrel (Brent) for the year (up from US$56 per barrel in the June forecast). This will add US$9 billion in cost for a total expected fuel bill of US$115 billion.

"The optimism in the global economy has seen passenger and freightvolumes rise, but that is the only bright spot. Rising costs andfalling yields have squeezed airline cash flows. The sharpdecline in yields will leave a lasting mark on the industry'sstructure. And revenues are not likely to return to 2008 levelsuntil 2012 at the earliest," said Mr. Bisignani.

"With cash flows substantially down over the first half of theyear, the situation is critical. Larger carriers have built-upcash reserves of US$15 billion -- a war chest that is warding offa major cash crisis. But the outlook for small and medium sizedcarriers -- with limited options to raise cash -- is much moresevere," said Mr. Bisignani.

The regional picture is varied:

* North American carriers are expected to post losses of US$2.6 billion, more than double the previously forecast loss of US$1.0 billion. Early resizing of capacity matched the slump in demand. But yields remain weak and recovery in travel demand is being held back by high levels of debt and unemployment.

* European carriers are expected to post the largest losses, US$3.8 billion. This is also more than double the previously forecast US$1.8 billion loss. Key long-haul markets were hit by the world trade collapse and delays in relaxing slot regulations prevented a timely reduction in capacity.

* Asia-Pacific carriers will post losses of US$3.6 billion, similar to the US$3.3 billion previously forecast. Worst hit by the recession and fuel hedging losses at the end of 2008, the region's carriers are the first to benefit from reviving Asian economic growth and the modest restocking of inventories in the West.

* Latin American carriers are expected to break even, an improvement from the previously forecast loss of US$0.9 billion and the best performance among the regions. Airlines in this region are benefiting from more robust economies and less of the consumer debt headwind seen in North America.

* Middle East carriers will also see an improved outlook, from a loss of US$1.5 billion to a loss of US$0.5 billion. Airlines continue to gain long-haul market share with expanded capacity and hub connectivity. The weakness of economic recovery, however, could mean continued excess capacity and further losses.

* The outlook for Africa's carriers is unchanged with an expected loss of US$0.5 billion. In spite of many economies on the continent continuing to grow during the global recession, African airlines were not able to benefit and lost market share. Further losses are expected in this region next year.

"This is not an airline-only crisis. There is less cash cominginto the industry and the entire value chain must be prepared forchange. All our business partners -- including airports, airnavigation service providers, global distribution systems -- mustbe prepared to cut costs and improve efficiencies. Some airportshave delivered cost reductions, but not in line with the magnitudeof the changes to the industry cash flow," said Mr. Bisignani.

"Governments need a wake-up call to create a policy framework thatsupports a competitive air transport sector capable of drivingeconomic expansion. But European governments are fixated on usingenvironment as an excuse to squeeze more taxes out of theindustry. And the US is not moving fast enough to deliver thecritical advantages to competitiveness that NextGen air trafficmanagement will bring," said Mr. Bisignani. "We don't wantbailouts. But we need governments to look more seriously at thissector by (1) investing in efficient infrastructure, (2) replacingthe proliferation of environmental taxes with a global solutionfor the environment and (3) giving airlines normal commercialfreedoms to merge where it makes sense and to access markets andglobal capital like any other business," said Mr. Bisignani.

2010

IATA expects losses to continue into 2010 with the industryexpected to report a US$3.8 billion net loss. This is based on alimited revival of growth in traffic volumes of 3.2% for passengerand 5% for cargo; very little increase in yields of 1.1% forpassenger and 0.9% for cargo and oil at US$72 per barrel.

IATA (International Air Transport Association) represents some 230airlines comprising 93% of scheduled international air traffic.

Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers'public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than US$3 pershare in public markets. At first glance, this list may look likethe definitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in eachThursday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book ofinterest to troubled company professionals. All titles areavailable at your local bookstore or through Amazon.com. Go tohttp://www.bankrupt.com/booksto order any title today.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding, electronicre-mailing and photocopying) is strictly prohibited without priorwritten permission of the publishers.

Information contained herein is obtained from sources believed tobe reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,delivered via e-mail. Additional e-mail subscriptions for membersof the same firm for the term of the initial subscription orbalance thereof are US$25 each. For subscription information,contact Christopher Beard at 240/629-3300.